While still relatively small in number, millionaire renters in the U.S. are on the rise, reports The Wall Street Journal, a reflection of how the math around home ownership has changed for even the wealthiest individuals.
Between 2018 and 2022, the share of households with annual incomes of more than $750,000 that rented rose to 10.5%, according to census data from IPUMS at the University of Minnesota analyzed by The Wall Street Journal, the highest level since the survey began in the mid-2000s. It was 8.4% in the previous five-year period.
The inventory of houses for sale has shrunk since the Federal Reserve started to raise interest rates in 2022. While supply has been on the rise in recent months, it is still considered below prepandemic levels.
The shortage has impacted deals, pushing home prices to record highs. Together, steep prices and higher rates have made it less affordable than just about any other time to buy a home. It is cheaper to rent than to buy in all of the top 50 metro areas, according to a recent Bankrate study.
