You'd think wealthier young people would want to grow their money by owning their homes, but an increasing number would rather rent.
Census data show that the number of Millennial and Gen Z households making $1 million or more a year and renting their homes increased nearly 230 percent from 2020 to 2024.
Real estate analyst Arthur Sterbcow says interest rates may be a factor, even for high-income earners — keeping homes on the market so long that they end up being put up for rent.
"It may be that those rental prices for those homes are attractive because the sellers couldn't sell them, so they said, 'well, let's just rent them,'" said Sterbcow, who says higher interest rates and higher insurance premiums are discouraging many home buyers.
"Absolutely and certainly in the low-to-moderate incomes, without a doubt, and you can certainly see that here, locally," he said.
And Sterbcow says anyone who locked in interest rates below two percent during the pandemic are less likely to sell.
