Feb 7, 2024 - News

More millionaires in Miami opt for rentals

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 South Florida grew 571.1% from 2020 to 2022, according to the latest data from RentCafe.

  • The combined number of millionaire rental households in the Miami, Ft. Lauderdale and Palm Beach metro area grew from 97 in 2020 to 651, data shows.

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 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.

Yes, but: In Miami, the number of millionaire renter households is 66. The report didn't include data for 2020, so it's unclear how much the number grew in the city over the two years that followed.

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.

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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