The Rise of “Rich Renters” in the US
FILE – This photo taken on Feb. 14, 2023 shows a house for rent in Washington, D.C., the United States. (Photo by Aaron Schwartz/Xinhua via Getty Images)
Earners who land in the “wealthy” or “affluent” categories are choosing to rent amid skyrocketing home costs.
Redfin analyzed data from 2019 to 2023 and found wealthy renters take up a large number of the rental market space, and that number is rising.
Here are the top most populous U.S. metropolitan areas that are seeing a surge in “rich renters.”
Top 10 Cities with the Most “Rich Renters”
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Not surprisingly, cities such as San Jose, California, and Orlando, Florida, have the highest share of wealthy renters, according to Redfin.
After those two cities came San Francisco, New York, and Seattle.
San Jose tops the list because the median home sale price is $1.4 million, which is the highest in the country. The typical affluent person living in San Jose would need to spend 10.5% of their income to afford rent on a median-priced apartment compared to 21% to afford a median-priced home.
Many of these cities are expensive, in part due to the number of wealthy people who live there, Redfin explained.
Raleigh, North Carolina, saw the largest increase in wealthy renters between 2019 (4.8%) and 2023 (7.7%) among the top 50 metros. Other cities such as Orlando, Buffalo, New York, Tampa and San Diego, California, also saw increases.
Oklahoma City, Oklahoma, had the lowest share of affluent renters as of 2023, followed by Cincinnati, Ohio; Hartford, Connecticut; Cleveland, Ohio; and Providence, Rhode Island.
The Backstory
“West Coast tech hubs like the Bay Area and Seattle gained popularity during the early 2000s, leading to a surge in home prices and an influx of wealthy workers. It was during that time that these areas saw the share of wealthy renters skyrocket,” Redfin said.
To see all 50 cities and where they ranked, click here.
What is a “Rich Renter?”
Redfin defines a “wealthy” or “affluent” renter as a household income that is in the top 20% of the average local income.
In most of the metropolitan areas that were looked at for Redfin’s ranking, the typical affluent renter earns more than they would need to a
