The real estate market has adapted to consumer demands in recent years, moving towards more abundant options and amenities as well as an increase in rental availability. There are many reasons why wealthy couples, families and individuals are choosing to rent rather than purchase homes. Multiple factors are involved and the trend is likely to continue as the next generation of affluent Americans is drawn to the many advantages of pursuing options designed for luxury.
In a society that has come to favor time over money, people now prefer to minimize unneeded responsibilities and remove extra duties from their lives. A Business Insider article asserts that "Many high net worth individuals have properties in various locations and would rather skip the cost and maintenance associated with owning" which is one of multiple reasons wealthy Americans are renting. A shift in attitude is being seen towards ownership as people manage their net worth in a different way. The investment in freedom to choose a home based on personal criteria is now a very positive influence in current housing considerations.
Although the allure of ownership, and the equity that goes with it, is still common, the values have shifted over a number of years. U.S. Census Bureau data shows a 217% increase in the number of renter households earning more than $150,000 a year between 2005 and 2015. Put another way "For some it's a lifestyle choice, as renting is more popular thanks to the high-end apartment market phenomenon that's been spreading all over the U.S. in the last couple of years."
The rising housing costs and volatility of the market are encouraging people to choose the safer option of renting what they want, where they want it, without any of the risk involved. Also, cities are growing with new and different rental options becoming available. The conveniences available in new, high-end communities, combined with the ease of mobility that renting allows are considerable influences on affluent Americans choosing to sign a lease. Young adults are leading this trend as they seek out alternatives to owning and delay first-time home buying, sometimes indefinitely, because they prefer the new luxury rental accommodations that are rapidly becoming available.