Because they’re beginning to see the arithmetic?
free link:
intercst
3 Likes
More likely because they see that housing is in a bubble.
And bubbles pop.
4 Likes
In terms of volume, large coastal metros lead. The number of millionaires renting in New York City rose from 2,204 in 2019 to 5,661 in 2023, according to the study. In San Francisco, it went from just 321 millionaire renters to 1,411 during those four years.
Of course, most affluent people still prize homeownership. The number of millionaire homeowners reached 143,320 in 2023 — more than 10 times the amount of millionaire renters. [end quote]
While there are good reasons to rent in some situations the landlord also has to pay property taxes and insurance. And the landlord can raise the rent unpredictably.
Anyone who likes control will buy.
As for the housing bubble…
I look at a house as “one house unit.” I don’t count my home as part of my net worth since I will need to live under a roof one way or the other. If housing prices rise they all rise together. If a bubble pops all houses will be affected similarly. (Location, location, of course.)
The exception is rent-controlled apartments. @OrmontUS has lived in the same rent-controlled apartment for over 50 years. When he considered buying a house I told him he should stay put. He has no idea of the headaches of maintenance, property taxes and insurance and also he travels much of the year. A pied-a-terre works much better in his situation.
Wendy
4 Likes
Yep. Doing a 'Rent vs. Buy" analysis will give you an early warning of that.
intercst
1 Like
what does that mean?
AI Overview
There are approximately 22 million millionaire households in the U.S., representing about one of every six households, according to recent UBS Wealth Management estimates and Federal Reserve data. A millionaire household is defined as one with at least $1 million in total assets (including investments, housing, etc.) minus debts.
Key Details
-
Definition:
A household is considered a “millionaire household” if its net worth (assets minus liabilities) is $1 million or more.
-
Overall Number:
The total number of millionaire households in the U.S. is estimated to be around 22 million.
1 Like
As the article notes, ‘millionaires still prize ownership’. Interesting enough, I didn’t see any numbers on those who both own and rent.
DB2
Here’s the warning.
Wendy
4 Likes
National averages aren’t much help in doing a rent vs. buy analysis. You’re comparing buying a property in the neighborhood you want to live in with renting an equivlant or similar property.
The area where I live has been in a bubble for years, yet there are still willing buyers.
Hope springs eternal. {{ LOL }}
intercst
2 Likes
While this is definitely true,
if enough ares across the country are in such a bubble, when that bubble pops, economic havoc may ensue. If only a few areas are in a bubble, then there will be a lesser effect. The Case-Schiller index, a national index, may be showing that too many areas across the country are in such a bubble.
2 Likes
Why are more millionaires renting?
I wonder if one thinks they might need to “move” on short notice, it would be an advantage to rent.
I include my home, at a conservative value, in my net worth calculation. It’s part of my net worth. If you sold your home, would you count the net cash you receive in your net worth?
Admittedly, I’m a little fastidious (Ms. Wolf calls it OCD) about my calculations, so I also reduce my net worth by the taxes I estimate I will owe on my IRA.
If you can’t do something in a spreadsheet, it ain’t worth doing. 
6 Likes