More Millionaires, Seniors Choosing To Rent

The housing market is losing ground when it comes to wealthy households and seniors, according to two reports.

RentCafe says one in 11 millionaires are now renters, up from one in 13 in 2019. In numerical terms, renter households earning $1 million or more jumped from 4,500 in 2019 to 13,700 in 2023 — a more than 200% increase.

Of course, the number of millionaire owners also saw a significant increase during the period, climbing from just shy of 53,000 to 142,320 households. 

But the report called the faster growth rate among renters “an inflection point,” noting that “affluent individuals are increasingly drawn to the flexibility and amenity-rich offerings of high-end rental properties.”

Meanwhile, younger age groups are renting less than they did a decade ago, the report also found. Renters 24 and under declined by around 9% compared to 10 years ago, with similar drops recorded among renters aged 45 to 54, according to RentCafe, a property management software company.

Meanwhile, a study from Point2Homes, a rental search engine, found that the number of renters aged 65 and up grew by 2.4 million over the past decade. That’s more than any other age group.

Whether it’s about downsizing, staying closer to family, or simply avoiding the costs and upkeep of owning a home, today’s seniors are making different choices about where and how they live, the report stated.

The only other age group showing an increase in renters is adults aged 55 to 64, a cohort that added half a million renters over the previous decade. 

The shift follows life changes such as becoming empty nesters, becoming single, or seeking more flexibility. In both cases – millionaires and seniors – Sun Belt markets such as Florida, Louisiana, Texas, and California were the hotspots.