More wealthy Utahns are choosing renting over buying
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The number of wealthy people who rent their homes is rising in the Salt Lake City metro area, according to a Redfin analysis of census data.
Why it matters: Nationally, homebuying costs have climbed faster than rents, making renting an attractive choice, even for those with deep pockets.
By the numbers: Rich renters are on the rise in 35 of the 50 most populous U.S. metros, the real estate site reports.
- Nearly 7% of Salt Lake-area renters in 2023 were wealthy, up 0.3 percentage points from 2019.
The big picture: Nationwide, the typical affluent renter earned more than they needed to afford a median-priced home, per Redfin.
Between the lines: Plenty of people enjoy the amenities, flexibility and maintenance-free lifestyle that renting offers.
- And some want to put extra cash toward other investments.
The fine print: Researchers defined wealthy renters as those with a household income in the top 20% of local incomes.
- In Salt Lake, that's a minimum of $167,827.
- In comparison, the income needed to afford a house in 2023 was $76,960.
What we're watching: In a growing number of cities, even starter homes come with luxury price tags, according to Zillow.
- Many affluent Americans are renting "to save up for the high-end home of their dreams," Redfin senior economist Elijah de la Campa said in the report.