Feb 7, 2024 - News

Denver millionaires are ditching homeownership to become renters instead

Data: RentCafe; Note: Ranking includes cities with at least 100 renter households with incomes of more than $1 million; Chart: Axios Visuals
Data: RentCafe; Note: Ranking includes cities with at least 100 renter households with incomes of more than $1 million; Chart: Axios Visuals

There are at least 116 millionaire renters in the Denver metro area, according to the latest RentCafe data provided to Axios.

Why it matters: We've long been told real estate is the best investment you can make. But more people with extra cash are choosing to put it elsewhere.

What they're saying: "Even though they're still a small group, the increasing number of millionaire renters indicates a shift in how well-off people approach lifestyle and investment decisions nowadays," RentCafe analyst Veronica Grecu tells us.

What's happening: Renting is the better deal in nearly every U.S. city right now, including Denver. So instead of dumping their capital into homeownership, rich renters are growing wealth by funneling their funds into other investments, like their own businesses.

  • "By renting β€” especially in top-notch neighborhoods β€” they can stay nimble, ready to move or shift their investments as the market changes," Grecu says.

Zoom out: Denver ranks 19th for the most millionaire rental households among other major metros measured by RentCafe.

The big picture: The number of millionaire renters across the U.S. nearly tripled from 2020 to 2022, per RentCafe data.

  • Experts predict that number will continue to grow in the near term, especially in high-cost cities.

πŸ’­ Our thought bubble: If we were Denver millionaires, we'd opt to live in one of the penthouses atop the stunning new development One River North β€” which rent for about $15,000 a month, the Denver Business Journal reports. One can dream, right?

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