Report: Millionaire renters increase in the Bay Area

Across the country, more millionaires are opting to rent and the Bay Area is leading the shift, according to a new report from RentCafe. 

High-income households are choosing flexibility over ownership, even in the Bay Area, one of the nation’s most expensive markets.

Many of today’s high-income renters live in San Francisco, which has historically high renter rates — where the abundance of apartments as well as sky-high costs of homeownership make renting the more practical and cost effective option.

Millennials and Gen X are the two generations driving the rise in millionaire renters. However, while today’s typical millionaire renter is more likely to be a millennial, the typical high-earning homeowner is more likely to be Gen X. Between 2019 and 2023, there was a clear generational shift as the share of high-earning Millennials who rent increased significantly (by 60%), outpacing Gen Xers who turned towards homeownership instead, the study noted.

According to the report:

• Since 2019, San Francisco’s millionaire renter households have more than quadrupled, from 321 to 1,411 — the second highest number after New York.
• In San Jose, the number more than tripled, rising from 173 to 577.
• While homeownership still defines wealth for many — San Jose has nearly 5,500 millionaire homeowners — the sharp rise in affluent renters signals a shift in mindset.

The full report: https://www.rentcafe.com/blog/rental-market/market-snapshots/millionaire-renter-households/.