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n recent years, there has been a rise in millionaire renters in the United States. According to data from IPUMS at the University of Minnesota, the share of renters earning $750,000 or more per year increased to 10.5% between 2018 and 2022, which is the highest level of wealthy renters since data tracking began in the mid-2000s. This trend is not limited to high-income earners; households in the top 5% of net worth also saw an increase in renters, reaching a record high of 3.7% in 2022, as per the Federal Reserve’s Survey of Consumer Finance.

    The challenge of renting versus owning is not unique to any particular state; it is prevalent across the country. According to Bankrate, there is not a single market among the top 50 in the country where buying is cheaper than renting. This is due to factors such as rising mortgage rates and property taxes, which have made homeownership less affordable for many Americans.

    Wealthier individuals are also choosing to rent due to the convenience and flexibility it offers. For instance, in New York City, millionaire renters are on the rise. In San Francisco, buying costs $1,000 more per month than renting, making it an expensive city to own property in. The residential real estate market in San Francisco is particularly competitive, with San Jose leading the nation in housing cost metrics.

    Developers are responding to this shift in the market by creating properties with larger floor plans and playrooms to cater to wealthier tenants who are positioned to rent for an extended period. This trend is not limited to San Francisco but is prevalent across the country as more Americans with financial means decide to rent rather than buy, even if only temporarily.