Over the past several years, rental costs have surged nationwide, forcing some would-be homebuyers to consider renting instead. According to Forbes, even those who can afford a home purchase are opting to rent, sending the share of rental households across the U.S. to its highest level in half a century.
Of that share, high-income renters earning $150,000 or more saw a speedy 82% growth in five years. Meanwhile, the number of renter households with incomes of more than $1 million reached a record high of 3,381 in 2020.
Why would those who can afford to buy turn to renting? Part of the answer may be found in high home prices, which made homeownership less attractive, especially for those well-heeled residents in pricey locations. This becomes even more obvious when comparing home prices to renter income in the cities with the highest increases in high-income renters: In nine of the 10 cities where the number of top-earning renters leapfrogged considerably, growth in home prices was higher than the national average (29%.)
Advertisement
Related Stories
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
Sales + Marketing Trends
Brand Loyalty and Why Builders Should Think Like a Hospitality Brand
Whether its offering that personal touch or incorporating experiences into amenity use, home builders have something to learn from the hospitality industry
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind