By: RentCafe
Home prices and a taste for flexibility led to a wave of high-incomers on the rental market. According to our most recent analysis, there are now 2.6 million Americans that make more than $150,000 choosing to live in rentals. In California, this affluent segment grew like no other by 136% over five years, reaching over 350,000 in 2020.
Among them, a ritzy kind of tenant is gaining ground: the millionaire renter. Households with incomes of more than $1M multiplied almost 5 times in Los Angeles:
Here are more details:
- Back in 2015, there were a mere 31 millionaires living in rentals in Los Angeles. Over the course of five years, this number grew to an impressive 143. Judging by the total number of millionaire renters residing here, Los Angeles is the third well-off haven, surpassed only by New York City with 2,457 millionaire renters and San Francisco, a distant second, with 294.
- Who is the millionaire renter? The largest demographic group of millionaire renters is represented by Millennials, with a share of 28% and an average age of 41. Gen X is the second largest group, accounting for 23%. Most millionaire renters work in management, but financial services, legislation, software development, and sales are also common industries. The average home size of a millionaire renter has three bedrooms.
- Looking at the broader bracket of high-income households, Los Angeles is the 2nd city for renters earning more than $150,000 per year, with over 82,000 such households in 2020. This category grew like no other, by a staggering 87% over the course of five years. Within the same timeframe, home prices increased by 42%.
- Nationwide, there are now 2.6 million Americans making more than $150,000 and living in rentals. This affluent segment grew the most out of all — 82% between 2015 and 2020, with renters overall inching up by 3.2% during the same timeframe.
If you want more details on where high-income renters live, here is the link to the full study and methodology: https://www.rentcafe.com/blog/rental-market/market-snapshots/millionaire-renter-households-triple-in-numbers/
