Millionaires Are Choosing to Rent

According to RentCafe, about one in 11 millionaires now rents their home. That’s a sharp reversal from traditional wealth patterns, where owning property was considered a status symbol.

Since 2019, the number of millionaire renters has tripled, outpacing their homeowning counterparts. While luxury rentals in cities like New York and San Francisco remain popular, emerging hotspots in Texas and Florida are attracting affluent tenants seeking flexibility and lifestyle benefits over ownership.

Why? Renting eliminates many of the headaches of ownership — maintenance, property taxes, and illiquidity. For high-net-worth individuals, renting can actually provide freedom: they can live in prime neighborhoods, avoid tying up capital in a single property, and stay mobile in an uncertain economic environment.

Rising Rates, Rising Rents

It’s not just the wealthy driving this shift. The broader housing market is putting pressure on potential homebuyers.

According to Barron’s, U.S. home prices remain elevated while mortgage rates hover just under 7%. At the same time, economic uncertainty makes locking in a mortgage less appealing.

A recent Fannie Mae survey revealed that 35% of consumers would choose to rent instead of buy if they had to move today — the highest share since last October, and well above the long-term average of 30%.

For many Americans, renting isn’t just a temporary compromise anymore; it’s a long-term solution. And that has big implications for real estate markets — especially multifamily housing.

Why Investors Should Care

Whenever consumer preferences shift, investors should follow the money. The surge in renting means apartment-focused REITs could see stronger demand, stable cash flows, and attractive dividend yields.

Unlike owning individual rental properties, investing in publicly traded REITs gives investors:

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  Diversification across many properties and regions

  
  


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  Professional management to handle operations

  
  


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  Liquidity (they trade like stocks)

  
  


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  Reliable dividend income

  
  

Here are three REITs benefiting from the rental boom — each offering income and potential upside.

Company: Mid-America Apartment Communities (SYM: MAA)
Yield: 4.24%

Mid-America Apartment Communities (SYM: MAA) focuses on multifamily housing across the Southeast, Southwest, and Mid-Atlantic regions. These areas have been major beneficiaries of population growth, with people moving from higher-cost coastal cities into more affordable and business-friendly states.

The REIT recently declared a quarterly dividend of $1.515 per share, payable July 31 to shareholders of record as of July 15. That payout, combined with MAA’s yield above 4%, makes it appealing for income-focused investors.

Wall Street is taking notice, too. Goldman Sachs just added MAA to its Conviction List, giving it a price target of $192. With the stock oversold earlier this year, Goldman sees strong upside potential as rental demand continues rising in the Sun Belt.

MAA also benefits from economies of scale — operating more than 100,000 apartment units — allowing it to keep costs low while maintaining high occupancy rates.