American households annually earning $150,000 or more are the fastest-growing renter segment in the nation. Between 2007 and 2017, these households increased by 175 percent.
Compared with a decade ago, Seattle has seven times more renters in this income range, and Charlotte, N.C., and Baltimore have five times more high-earning renters, according to RentCafé's study. Of all U.S. cities, New York City has the greatest number of these households—a quarter million—and San Francisco has more high-income renters than high-income homeowners.
So why do those who have the means to buy still opt for renting? Be it a post-housing crisis mentality or a new Millennial approach to housing and accommodation, it becomes more and more obvious that there is a shift in renter demographics and the way the real estate industry is responding. For some, it’s a lifestyle choice—monthly rent is a smaller price to pay for having more flexibility or for being able to live closer to jobs, hip city centers, and art districts. For others, not even their pretty paycheck can keep up with the fast-paced increase in home prices.
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