More Millionaires Are Choosing to Rent. What That Means for Luxury Buyers and Sellers in San Diego and Chicago

Wealthy households are rethinking ownership. According to Realtor.com, a growing number of seven-figure households are choosing to rent. The reasons are flexibility, keeping cash available, and a wider selection of high-end rentals. For decades, buying was the default for anyone who could afford it. That assumption is getting weaker at the top of the market.

We see the logic in it. A household with significant assets doesn't always need a home to build wealth. If capital can earn more invested elsewhere, or a career means moving every few years, a lease can be the more practical choice. Today's financing costs make that math even easier to justify.

What it means for San Diego. Coastal San Diego has always drawn buyers who split time between homes, executives on fixed-term assignments, and families testing a neighborhood before committing. Many of these people would rather lease a furnished home in La Jolla, Del Mar, or Coronado for a year than make a multimillion-dollar purchase they might regret. For owners of well-kept luxury homes, that creates a real option. A premium lease can bring in income while you wait for the right moment to sell, though carrying costs, wear, and tax treatment should be weighed first.

What it means for Chicago. Downtown and the Gold Coast have deep inventory of full-service high-rise living. Plenty of affluent residents value the amenities and lock-and-leave convenience more than they value owning. That puts luxury condo sellers in competition with high-end rental buildings as well as other listings. Pricing and presentation have to account for that. A buyer who could just as easily lease a new tower unit next door needs a clear reason to own.

What it means for buyers. If you are weighing renting against buying at the upper end, the question is less "can we afford it" and more "what do we want our capital doing." Buying still makes the most sense for households who plan to stay put, want control over renovations, or value the stability of a fixed housing cost. Renting suits people who expect change or want to keep their options open.

Our view. Neither choice is automatically right. The best decisions start with an honest look at your time horizon, how you plan to use the property, and how it fits your broader financial plan, ideally alongside your tax and wealth advisors. Our team works with clients on both sides of that question in San Diego and Chicago. We are glad to walk through the numbers for your situation.