M
illionaires are increasingly opting for rentals over ownership, despite their ability to afford homes. This trend is driven by factors beyond financial constraints, which typically hold back other Americans from buying property.

    Over the past 15 years, households in the top 5% of net worth have nearly doubled, reaching almost 5%, according to the Federal Reserve's Survey of Consumer Finances. High interest rates and a lack of desirable residential inventory are among the reasons why high-net-worth individuals prefer renting. Unlike owning, renting typically comes with lower maintenance costs.

    Between 2018 and 2022, the number of households making over $750,000 that chose to rent increased from 8.4% to 10.5%, census data shows. Many millionaires express frustration with the current housing market, citing a lack of suitable properties at reasonable prices. "The supply is close to zero" in terms of price for value, says George Goognin, a millionaire fintech startup founder who rents his $19,000-a-month Manhattan apartment.

    Some high-net-worth individuals have attempted to buy and renovate homes, only to be deterred by unexpected expenses and delays. Biotech executive Arun Das and his wife, for example, sold their historic Philadelphia row house after realizing the renovation process would require too much time and effort. They now rent a high-rise in the area, valuing the freedom from maintenance responsibilities.