A
growing number of millionaires in the US are opting out of homeownership, choosing instead to rent despite their financial means. According to a Wall Street Journal report, this trend is driven by the perception that today's housing market offers poor value for its high prices. Millionaire entrepreneur George Goognin, who rents an apartment in Manhattan for $19,000 a month, exemplifies this mindset: "In terms of price for value, the supply is close to zero."

    A similar phenomenon was observed in Jersey City, where 104 millionaires were renting their homes by 2020, up from just a handful five years prior. In Washington D.C., the number of millionaire renters tripled over the same period, while San Francisco saw an astonishing 1,629% increase.

    The trend is not limited to these cities; data analyzed by the Wall Street Journal indicates that the number of high-income households renting their homes has increased nationwide. Between 2018 and 2022, there was a 10.5% rise in renters among those earning $750,000 or more annually, while those with net worth in the top 5% saw a 3.7% increase.

    Some millionaires are choosing to rent for practical reasons, such as outsourcing repairs and enjoying walkable environments without the burden of maintenance. However, this trend is not universal, with real estate agents reporting that high-end earners in some areas still prefer homeownership.