Phoenix, a city known for its rising heat and sprawling suburbs, is now gaining attention for its surge in high-earning individuals who are opting to rent rather than buy homes. According to a report from ABC 15, Phoenix ranks sixth in the nation for the growth of millionaires choosing to rent. This somewhat unexpected shift underscores a broader change in the mindset of America's wealthy.
In the last four years alone, the percentage of millionaire households that rent in Phoenix has skyrocketed 519%. To put it in terms that are closer to home, it used to be one in 11 millionaires in the metro opted to rent back in 2019. Today, it's one in nine. This trend suggests that for many high earners, flexibility and perhaps a disdain for the burdens of homeownership might be driving their housing choices. The same AZ Big Media article points out that the Valley saw an even steeper rise in millionaire homeowners, by 347%, indicating that while renting is on the uptick, buying remains a strong pursuit for Phoenix's rich.
Digging into the numbers, there are now 1,113 households in the Phoenix metro area that earn seven figures annually, with 130 millionaires renting their homes. This is a significant rise from the 21 millionaires who were renters just five years ago. It seems renting in Phoenix isn’t exclusive to the financially constrained or those seeking their first rung on the property ladder, as reported by AZ Big Media.
And it's not just a Phoenix phenomenon. The trend of affluent renters is spreading across major hubs in the West. Seattle, San Francisco, Los Angeles, and San Jose all experienced substantial increases in wealthy renters, up to 350%. However, Phoenix's unique real estate and lifestyle offerings seem to have given it a competitive edge in attracting this demographic. Among these cities, L.A. was the only one where the share of millionaire renters did not grow faster than that of homeowners, shedding light on varying regional dynamics, as stated by AZ Big Media.
Millionaire renters aren’t just living in big coastal cities anymore. In places like Houston, the number of millionaire renters jumped from 7 to 179 in just four years. Cities like Phoenix, Dallas, and Miami are also seeing more wealthy people choosing to rent, as per AZ Big Media.
