It seems counterintuitive. When you have millions in the bank, why would you choose to rent a home instead of buying one? For generations, homeownership has been a cornerstone of the American dream and a symbol of financial success. Yet, a growing number of high-net-worth individuals are intentionally sidestepping homeownership in favor of luxury apartments and large rental homes. According to Fortune.com, 1 in 11 millionaires are renters, compared to 1 in 13 in 2019.
This isn't about not being able to make a cash down payment; it's a calculated financial and lifestyle decision. This shift reveals a modern approach to wealth management and personal freedom. Millionaires are renting to unlock financial flexibility, gain access to unparalleled amenities, and pursue a more mobile and experience-rich lifestyle. Let’s explore the key drivers behind this trend, from strategic capital allocation to the desire for a hassle-free living experience.
1. The Financial Case for Renting
For many millionaires, the decision to rent is a matter of smart math. Owning a multi-million-dollar property comes with significant and often unpredictable expenses that go far beyond the monthly mortgage payment.
Avoiding the costs of ownership
Owning a luxury property involves substantial hidden costs. These include property taxes, which can amount to tens or even hundreds of thousands of dollars annually, plus homeowner's insurance, maintenance, and repair bills. A leaky roof or a broken HVAC system in a 10,000-square-foot home isn't a minor inconvenience; it's a major capital expense.
Renting eliminates these financial burdens. Monthly rent is a predictable, fixed cost, allowing for more precise budgeting and financial planning. All maintenance, repairs, and property management are handled by the landlord, freeing up both time and money for the tenant.
The power of liquid capital
Perhaps the most significant financial advantage of renting is liquidity. Buying a luxury home ties up millions of dollars in a single, non-liquid asset. That capital is stuck in real estate and cannot be easily accessed or repurposed without selling the property—a process that can be slow and costly.
By renting, millionaires keep their capital liquid and available for more lucrative opportunities. Instead of sinking $5 million into buying a house, investing that same amount in a high-yield asset can generate income that can easily cover the rent on a spectacular property while the $5 million continues to grow.
2. A Lifestyle Built on Flexibility and Freedom
Beyond the numbers, the choice to rent is deeply connected to a desire for a more flexible and dynamic lifestyle. High-net-worth individuals often have careers and personal interests that span the globe, and renting supports this mobility.
The freedom to move
Whether it's for a new business opportunity, a change of scenery, or simply to follow the seasons, renting offers the freedom to relocate with minimal friction. Instead of being anchored to one location by a property, you can sign a one or two-year lease and move on when it expires.
This flexibility is particularly valuable for those who are bi-coastal or choose to be in different cities for extended periods. It also allows a "test drive" of a neighborhood or city before making a long-term commitment. You can spend a year in Miami, the next in Aspen, and the following one in New York City, all without the logistical nightmare of buying and selling property each time.
Access to unmatched luxury amenities
The luxury rental market has evolved to cater specifically to the demands of its affluent clientele. High-end apartment buildings and rental communities now offer amenities that rival those of five-star resorts. We’re not talking about your standard apartment pools and gyms!
Examples include private spas, rooftop infinity pools with cabana service, state-of-the-art fitness centers with personal trainers, 24/7 concierge services, in-house chefs, and even private movie theaters. For a millionaire, renting can provide access to a curated lifestyle and a suite of amenities and services that would be impractical and incredibly expensive to replicate in a private home.
3. The Strategic Side of Renting
The decision to rent is often part of a broader wealth and life strategy. It reflects a shift from asset accumulation for its own sake to a more deliberate focus on experiences and efficiency.
Simplifying life and minimizing hassles
Managing a large estate is practically a full-time job. It requires overseeing staff, scheduling maintenance, managing security, and dealing with a constant stream of minor and major issues. Many wealthy individuals have reached a point where they value their time and peace of mind more than the status of homeownership.
In a luxury rental, the property management company handles everything from soup to nuts, allowing renters to simply enjoy their home and their life. This "lock and leave" lifestyle is ideal if you travel frequently or split your time between multiple locations. Further, you can leave for weeks or months at a time, knowing the property is secure and maintained in your absence.
Evolving definitions of success
For a new generation of millionaires, and even for established ones re-evaluating their priorities, wealth is a tool for creating a desired lifestyle, not just for acquiring possessions. The emphasis is shifting from owning things to having experiences.
Freedom, mobility, and time are the new luxury goods. Renting gives high-net-worth individuals more of all three. It allows them to invest in what truly matters to them, whether that's growing their business, traveling the world, or spending more quality time with loved ones.
A New Era of Wealth and Living
The rise of the millionaire renter is more than a housing trend; it's a reflection of a fundamental shift in attitudes toward wealth, assets, and lifestyle design. The old playbook of acquiring property as the ultimate symbol of success is being rewritten. Today, financial savvy means maximizing liquidity and returns, while personal fulfillment often means prioritizing flexibility and experiences over permanent roots.
As the luxury rental market continues to expand its offerings, providing ever more sophisticated homes and amenities, renting will likely become an even more attractive option for those who can decide exactly how and where they want to live. For some millionaires, the ultimate luxury isn't owning a home—it's the freedom not to.
Ready to discover your next extraordinary home? Explore the best in luxury rentals on Apartments.com and find a rental that matches your taste and lifestyle.
