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Renting is no longer just about affordability — it’s becoming a new sign of status and wealth. According to Redfin experts, wealthy or affluent Americans are choosing to rent because of flexibility and soaring home prices.
A recent Redfin analysis of U.S. Census Bureau, MLS and county records from 2019 to 2023 found that in 35 of the 50 largest U.S. metro areas, wealthy renters — households earning in the top 20 percent — are taking over the rental market.
Certain cities, including San Jose, California; Raleigh, North Carolina; Orlando, Florida; Buffalo, New York; and Tampa, Florida, have seen a surge in wealthy renters compared to pandemic numbers.
San Jose has the highest share of wealthy renters with 11 percent of renters earning in the top 20 percent.
In Raleigh, 7.7 percent of renters are now wealthy, up from 4.8 percent in 2019. Orlando sits at 10.8 percent (up from 8.5 percent), Buffalo at 6.6 percent (up from 4.6 percent) and Tampa at 9.4 percent (up from 7.9 percent).
Redfin | Pandemic Boomtowns Saw Uptick in Homebuying Costs and Wealthy Renters
Many of these metros, especially those on the West Coast, have long been among the most expensive places to buy a home. San Jose has the highest median home price in the country at $1.4 million, making renting a more attractive option. Meanwhile, Orlando’s rising share of wealthy renters signals that renting isn’t just for those priced out of the market — it’s also a strategic choice.
Elijah de la Campa | Redfin Senior Economist
“Many wealthy Americans can easily afford the median-priced home, but are renting to save up for the high-end home of their dreams,” Redfin Senior Economist Elijah de la Campa said in a statement. “When housing costs rise rapidly — be it in tech hubs during the early 2000s or Sun Belt boomtowns during the pandemic — that dream home takes longer to save up for, keeping folks renting for longer.”
Even as they exceed the income qualifications, many high earners are still choosing to rent because home sale prices remain unattractive.
Home prices in nearly all major Sun Belt cities surged during the pandemic. Tampa, for instance, has seen home prices jump 67.4 percent since 2019, while the income required to afford a home has risen 63.1 percent — the biggest increase among major metros. At the same time, Tampa’s rent prices have increased 51.6 percent, though that’s still a smaller jump compared to homeownership costs.
Nationally, homebuyers now need to spend 36.9 percent of their income to afford a median-priced home, making renting the more affordable option for many.
“With mortgage rates near 7 percent, renting frees up cash for other investments that may be more lucrative than real estate,” de la Campa said.
Beyond affordability, lifestyle flexibility is another major factor keeping high affluent earners in rentals.
Juan Castro | Redfin Premier Agent in Orlando
“For a lot of folks, renting is all about opportunity. The U.S. economy and job market are in flux, and people want to be able to move and flow as things change,” Juan Castro, a Redfin Premier real estate agent in Orlando, said. “I have friends who sold their home in favor of renting because they want the flexibility to move fast if their dream job surfaces in another state. They believe many employers won’t offer remote work moving forward, and don’t want to be stuck with a home that may be difficult to sell quickly.”
Redfin’s updates on the housing market come just one day after Rocket Companies announced its purchase of the brokerage in a $1.75 billion all-stock deal.
