Why the Old Mantra of ‘Owning Is Better Than Renting’ Doesn’t Apply to the Rich
For generations, buying a home was considered the ultimate financial milestone. It was proof that you’d made it, an anchor of stability, and the safest way to build wealth. That narrative is still present, but in recent years, it’s been getting a surprising rewrite. And interestingly, it’s the people who can most easily buy, the millionaires, who are often choosing to rent instead.
Across the United States, the number of high-income households that rent has surged. In 2023, more than 13,000 households earning $1 million or more each year were renting. That’s more than triple the 2019 count. That doesn’t mean the wealthy have abandoned ownership altogether, but it does show that the old mantra doesn’t carry the same weight it used to. And when you look at the reasons behind it, the logic is too complex to ignore.
Housing Costs Still Bite
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It’s tempting to assume millionaires don’t care about price tags, but they didn’t get rich by ignoring numbers. A $2 million home at today’s mortgage rates, still hovering around 6% for a 30-year loan, can mean a monthly payment north of $12,000. That’s exclusive of property taxes, insurance, or maintenance.
Some wealthy households simply see the math as unfavorable and find it cheaper to rent a luxury condo with the same square footage and a better view. When carrying costs on ownership run higher than monthly rent in the same neighborhood, leasing isn’t a compromise as much as a smarter financial choice.
Flexibility Beats Roots
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Life at the top often comes with job offers in different cities, startups to fund across state lines, or the freedom to spend half the year abroad. Renting keeps doors open without the hassle of unloading a property when life changes course. Selling a home still takes an average of two months or more, and there are still time-consuming processes after the sale.
In high-end rentals, the convenience goes beyond mobility. Many luxury buildings offer amenities like gyms, coworking spaces, concierge services, and event lounges. Wealthy tenants who split time between multiple cities enjoy that level of convenience.
Investments Still Work Well Elsewhere
Owning a home is often considered an investment, but millionaires see better ways to grow their money. The S&P 500 has delivered double-digit gains recently, topping 24% in 2024. Compare that with single-digit annual appreciation in housing.
By renting, the wealthy avoid tying up millions in one property and instead keep cash liquid for stocks, private equity, or business ventures. Some use the freed-up capital for high-yield savings or bonds, which still generate steady returns without locking wealth into real estate. The ability to reallocate quickly is one of the biggest perks of staying off the ownership track.
Supply Doesn’t Match Demand
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Even if money is no object, the right house isn’t always available. The United States faces a housing shortage of several million units, according to Freddie Mac. That leaves wealthy buyers sifting through limited options that may not meet their standards.
For those who want a custom build, the process can stretch across years, from land acquisition to construction. Renting fills the gap in the meantime by offering comfort and stability without forcing a rushed purchase. Some even decide that staying in long-term rentals with all the desired features is better than waiting for the perfect house to materialize.
Priorities Have Shifted
The pandemic years reshaped values for many, including the wealthy. Some would rather put their money into global travel, passion projects, or startups instead of a single piece of property. Others see renting as a way to live where they want now, without tying their financial future to a local housing market that might swing downward.
In New York alone, the number of millionaire renters more than doubled between 2019 and 2023. Coastal hubs still attract the highest volumes of wealthy tenants, but Southern cities like Miami, Houston, and Atlanta also saw surges during that period. Across markets, the theme is the same: freedom and liquidity outweigh the prestige of ownership.