More Millionaires Are Choosing To Rent — 3 Reasons You Should, Too

Navigating the housing market has been so challenging over the last few years that even millionaires are balking at the situation and opting to rent rather than buy.

While high interest rates and pricey mortgage payments deter many Americans from buying property, well-heeled tenants who can afford their dream home would rather not deal with a lack of inventory and inflated prices.

Between 2018 and 2022, an estimated 10.5% of Americans earning more than $750,000 annually chose to rent, according to The Wall Street Journal’s analysis of data from the University of Minnesota. That’s the highest level since the mid-2000s, and up from 8.4% between 2013 to 2017, the outlet reported.

Learn More: 5 Housing Markets That Will Plummet in Value Before the End of 2025

Consider This: How To Get Rich in Real Estate Starting With Just $1,000

Tech entrepreneur George Goognin is part of the growing trend of millionaires who prefer to rent. Goognin told The Wall Street Journal, “In terms of price for value, the supply is close to zero.”

After unsuccessful attempts to buy a house in Miami and New York he deemed worthy, Goognin is instead renting a luxurious three-bedroom apartment in an upscale Manhattan high-rise for about $19,000 a month.

But there’s another reason millionaires choose to rent — they don’t want the hassles that come along with homeownership. They want the convenience of renting and letting the owner take on problems that may arise.

“People with extreme means are often busy building their businesses and earning their wealth,” Lauren Hurwitz , licensed realtor in Westchester County, New York, and founder and CEO of MediaHouse, told GOBankingRates.

“One of the joys of renting is that you ideally don’t have to deal with house headaches,” Hurwitz said. “Simply notify the owner that something is wrong, and the problems magically disappear without the tenant lifting a finger –a convenience that, for some, is priceless!”

While the uber-rich have their own reasons for rejecting homeownership, here are three reasons everyone should consider renting instead of buying .

It's Going Viral: Want to Retire Rich? Suze Orman Says You're Missing This Key Money Move

When Rent Is Cheaper Than a Mortgage Payment

While owning a home is part of the American dream and often seen as a good investment, the market is changing, making buying a house out of reach for many.

“We are seeing that rent is often less expensive than a mortgage payment, given the high interest rates — so many people are choosing to rent,” Hurwitz explained. “If your cost of rent is going to be significantly cheaper than your mortgage payment, you may want to consider renting if you’re not confident the rates will change in time for you to refinance on the home in a reasonable amount of time.”

Trending Now: 5 Types of Homes That Will Plummet in Value in 2024

Rent If You Don’t Want to Commit Long Term

Another reason to consider renting, per Hurwitz, is if you can’t commit to a property for at least 5 to 7 years because of the resale value.

When selling, it’s not just the price of the home to consider — it’s also the fees you paid. You want to make a profit, so holding onto a property longer helps give you a bigger return because the house has more time to build equity.

“In Westchester County, New York, where I serve as a realtor, for example, your closing costs on the buying side are typically between two to three percent of the purchase price covering fees such as buyer’s attorney, bank fee, application fee, processing fee, appraisal fee, mansion tax (1% on sales of 1,000,000 or greater), real estate taxes, mortgage tax, title tax, and so on,” Hurwitz explained.

She added, “Depending on the market conditions, is it possible you can buy a home in 2024 and then turn it for a profit without putting work into it in 2026? Sure. Anything is possible. But that won’t necessarily be enough time for the property to appreciate for you and also recoup your closing costs from the 2024 sale.”

Your Finances Are Not in Order

If you’re in a lot of debt, don’t have enough money set aside for emergencies, or have saved for a down payment, finance coach Rachel Cruze suggested renting over buying.

“Before you buy a home, you need to make sure your financial house is in order,” she wrote in a recent article . “That starts with getting out of debt. Next, save an emergency fund of 3 to 6 months of expenses, and after that, start saving for a down payment.”

This article originally appeared on GOBankingRates.com : More Millionaires Are Choosing To Rent — 3 Reasons You Should, Too