Raleigh's wealthiest are increasingly opting out of homebuying
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Nearly 8% of renters in the Raleigh metro in 2023 made more than $185,000 a year, up almost 3 percentage points from 2019, per a Redfin analysis of the latest Census Bureau data.
Why it matters: As homebuying costs have climbed faster than rents, renting has become an attractive choice for many — even those with deep pockets.
The big picture: Rich renters are on the rise in 35 of the 50 most populous U.S. metros, the real estate site reports.
- Raleigh's metro saw the biggest jump in wealthy renters in the country — ahead of Orlando, Buffalo, N.Y., Tampa and San Diego.
Between the lines: Nationally, the typical affluent renter made more than they needed to afford a median-priced home, per Redfin.
- In addition to rising homebuying costs, renting can be a more attractive option for folks who enjoy the amenities, flexibility and maintenance-free lifestyle that renting offers.
- Renting can also free up extra cash for high-income earners to put toward other investments.
The fine print: Researchers defined wealthy renters as those with a household income in the top 20% of local incomes — about $185,000 in the Raleigh area in 2023.
- Meanwhile, the income needed to afford a house that same year was $65,841, with the median monthly housing payment just over $1,600.
What we're watching: In a growing number of cities, even starter homes come with luxury price tags, according to Zillow.
- Raleigh's median home price in 2023 was $423,000, a 51% increase from 2019.