These cities have the highest percentage of 'rich renters' as housing prices rise

Earners who land in the "wealthy" or "affluent" categories are choosing to rent amid skyrocketing home costs.

Redfin analyzed data from 2019 to 2023 and found wealthy renters take up a large number of the rental market space, and that number is rising.

Here are the top most populous U.S. metropolitan areas that are seeing a surge in "rich renters." 

Top 10 cities with the most "rich renters" 

Dig deeper:

Not surprisingly, cities such as San Jose, California, and Orlando, Florida, have the highest share of wealthy renters, according to Redfin.

After those two cities came San Francisco, New York, and Seattle.

San Jose tops the list because the median home sale price is $1.4 million, which is the highest in the country. The typical affluent person living in San Jose would need to spend 10.5% of their income to afford rent on a median-priced apartment compared to 21% to afford a median-priced home.

Many of these cities are expensive, in part due to the number of wealthy people who live there, Redfin explained.

Raleigh, North Carolina, saw the largest increase in wealthy renters between 2019 (4.8%) and 2023 (7.7%) among the top 50 metros. Other cities such as Orlando, Buffalo, New York, Tampa and San Diego, California, also saw increases. 

Oklahoma City, Oklahoma, had the lowest share of affluent renters as of 2023, followed by Cincinnati, Ohio; Hartford, Connecticut; Cleveland, Ohio; and Providence, Rhode Island.

The backstory:

"West Coast tech hubs like the Bay Area and Seattle gained popularity during the early 2000s, leading to a surge in home prices and an influx of wealthy workers. It was during that time that these areas saw the share of wealthy renters skyrocket," Redfin said.

To see all 50 cities and where they ranked, click here. 

What is a "rich renter?"

Redfin defines a "wealthy" or "affluent" renter as a household income that is in the top 20% of the average local income.

In most of the metropolitan areas that were looked at for Redfin’s ranking, the typical affluent renter earns more than they would need to afford a median-priced home. 

Dig deeper:

For example, in Pittsburgh, Pennsylvania, an affluent renter earns at least $145,295 per year, which is nearly four times what they would need to afford a median-priced home. 

Why are "affluent" people renting? 

Big picture view:

Across the United States, the income needed to afford a median-priced home has gone up 36.9% since 2019, though the average cost of rent is up 28.1%, according to Redfin’s data.

What they're saying:

"Many affluent Americans are choosing leases over mortgages because the cost of buying a home has jumped significantly more than the cost of renting one in recent years," said Redfin Senior Economist Elijah de la Campa. "With mortgage rates near 7%, renting frees up cash for other investments that may be more lucrative than real estate."

In Tampa, Florida, for example, the median home sale price went up 67.4% from 2019, the largest jump among the metros, Redfin said. In comparison, rent rose 51.6%. 

Another reason "rich renters" are opting out of buying at the moment is to have more freedom amid a fluctuating economy and uncertain job market.

"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," Castro 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."

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