In a significant shift within the real estate landscape, Houston has been identified as the fastest-growing metro area in the United States for millionaire renters, according to a recent analysis by RentCafe. This reversal from traditional homeownership among wealthy individuals highlights a growing trend towards renting as a lifestyle choice, driven by flexibility and investment strategies. The study revealed a remarkable increase in the number of Houston households earning over $1 million annually and choosing to rent, rising from 7 in 2019 to 179 by 2023—a 25-fold increase, the highest in the nation.
This trend is part of a broader national pattern, as the number of millionaire renter households in the U.S. has more than tripled from 4,512 in 2019 to 13,692 in 2023. Historically, millionaires have been predominantly homeowners, but recent years have seen a shift, particularly among younger high earners who prefer to allocate their capital elsewhere. These individuals are attracted to amenity-rich rental properties and the freedom from maintenance responsibilities, favoring the flexibility to relocate as opportunities arise.
The rise in high-income renters coincides with the pandemic-accelerated shift towards remote work and the accompanying increase in home prices and mortgage rates, which have further fueled the appeal of luxury rentals. Houston’s attractiveness is bolstered by its business-friendly environment and the absence of state income tax, making it a particularly appealing destination for affluent individuals.
The RentCafe study also underscores the role of Millennials in driving this trend, with nearly half of millionaire renters nationwide belonging to this demographic, compared to only 16% among millionaire homeowners. Conversely, Gen Xers have surpassed Baby Boomers in homeownership among millionaires as of 2023.
Recognizing these changes, developers in Houston are increasingly focusing on luxury high-rises and build-to-rent single-family home communities, catering to affluent renters seeking space and privacy without long-term commitments. The study utilized Integrated Public Use Microdata Series (IPUMS) census data to examine income levels and housing status from 2019 to 2023, providing a comprehensive view of the evolving real estate preferences among America’s wealthiest.
