Home and apartment leasing used to be associated with younger people and those with lower incomes. By the time you’d “made it” in your career, you either owned your own home or were well on your way.
Those days are gone.
Amid high housing costs, the share of high-income renters is on the rise nationwide and especially in California. According to an analysis from RentCafe, over the past five years, there has been an 82% increase in the number of renters who earn $150,000 or more. The number of households with incomes over $1 million has tripled over the same time period.
People who earn over $150,000 per year represent the most rapidly growing share of renters. Households with annual incomes between $100,000 and $150,000 represent the second-largest growing share. On the flip side, the share of renters earning less than $50,000 has decreased by 11.2%.
“This is explained by low-income renters moving in with family members when the pandemic started, as well as households whose earnings grew and transitioned to higher income groups,” according to RentCafe.
Among California locales, San Francisco saw the largest increase in high-income renters. Millionaires who rent in San Francisco grew from 17 households in 2015 to 294 in 2020. That’s an increase of 1629% — the largest increase in the nation.
San Francisco is now just behind New York as the city with the most millionaire renters. Los Angeles is #3. Its share of millionaire renters has grown 361%.
There is a lot more fascinating information contained in this report, so we encourage you to check it out for yourself. Click here.