The Rise of Renting: Why Wealthy Millennials are Abandoning Homeownership

Rich young Americans are increasingly choosing to rent instead of pursuing homeownership as mortgage rates and housing costs reach new highs. The average monthly mortgage payment on a new home is now 52% higher than the average apartment rent. Climbing mortgage rates and high house prices are making it difficult for young Americans to afford homeownership, with many needing an annual income of almost $115,000 to afford a median-priced home. As a result, the number of high-income millennials and Gen Z renters has significantly increased. Renting offers more flexibility, financial freedom, and the ability to invest in other assets. However, renting is not seen as a permanent solution, and many still view homeownership as a wealth-building tool if the math and personal circumstances align.