Over the past several years, rental costs have surged nationwide, forcing some would-be homebuyers to consider renting instead. According to Forbes, even those who can afford a home purchase are opting to rent, sending the share of rental households across the U.S. to its highest level in half a century.
Of that share, high-income renters earning $150,000 or more saw a speedy 82% growth in five years. Meanwhile, the number of renter households with incomes of more than $1 million reached a record high of 3,381 in 2020.
Why would those who can afford to buy turn to renting? Part of the answer may be found in high home prices, which made homeownership less attractive, especially for those well-heeled residents in pricey locations. This becomes even more obvious when comparing home prices to renter income in the cities with the highest increases in high-income renters: In nine of the 10 cities where the number of top-earning renters leapfrogged considerably, growth in home prices was higher than the national average (29%.)
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