Feb 13, 2024 - News

Houston's millionaire renters have grown since 2020

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

The number of millionaire renters in greater Houston grew almost 200% from 2020 to 2022, according to the latest data from RentCafe.

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.

By the numbers: There were 424 millionaires choosing to rent across the Houston, Woodlands and Sugar Land region in 2022.

  • That's up from 144 in 2020.

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 Axios.

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

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

What's happening: Renting is the better deal in nearly every U.S. city right now. So instead of dumping their capital into homeownership, rich renters are growing wealth by putting their money into "stocks, bonds, their own businesses, or other assets," Grecu says.

The bottom line: "By renting — especially in top-notch neighborhoods — they can stay nimble, ready to move or shift their investments as the market changes," Grecu says.

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