In a city known for sky-high property values, more millionaires in New York are opting to rent rather than buy. According to a recent RentCafe report, the number of millionaire renter households in NYC has nearly tripled in just four years. In 2023 alone, the city counted 5,661 renter households with over $1 million in annual income—a 157% increase since 2019. That’s more than any other U.S. city, far ahead of San Francisco (1,411), Los Angeles (823), and Miami (314).
What’s behind this shift? A key factor is the rise in mortgage rates, which have climbed from about 3% to over 7% since the pandemic. Even affluent buyers are reconsidering whether locking in real estate debt at higher interest rates makes financial sense, especially when they can deploy capital into higher-yield investments elsewhere.
Another major reason is that many homeowners who secured ultra-low mortgage rates during 2020–21 are choosing not to sell, making it harder for would-be buyers to find suitable properties. Add to that a limited housing inventory, a desire for flexibility, mobility, and portfolio diversification, and renting becomes an attractive, even strategic, choice for wealthy households.
It’s worth noting that the number of millionaire homeowners in New York has also doubled since 2019, in line with broader national trends in wealth accumulation. But the surge in high-income renters suggests a growing preference among the wealthy for financial agility over traditional homeownership. This evolution could have lasting effects on the city’s luxury rental market, pushing demand for high-end units and shaping future development.
