In recent years, the trend of living the high life as renters has skyrocketed, with more people opting for luxurious single-family rentals over traditional home ownership. The appeal of the affluent lifestyle without the burden of massive mortgage payments or the stress of property maintenance has led to a surge in demand for high-end rental properties across the country.
A recent study by Point2, an international real estate search portal, delved into the rental inventory of the 100 largest US cities to determine which cities offer the highest shares of luxury single-family houses for rent. Miami, known for its glitzy lifestyle, ranked among the top cities for luxury rentals with over 33% falling into the Tier 1 category, commanding monthly rental rates above $5,000. The city also ranked third for ultra-luxury rentals with nearly 13% demanding monthly rates exceeding $10,000, trailing behind only Los Angeles and Honolulu.
Irvine, CA, took the lead with an impressive 74% of all rentals falling into the Tier 1 luxury category. The Point2 report also highlighted the booming trend of build-to-rent housing, with a significant increase in the construction of single-family rental homes across the country.
Analysts at Point2 noted that the increase in demand for single-family rentals was fueled by the need for space and privacy, particularly in the wake of the pandemic and the rise of remote work. Renters are opting for single-family homes for rent to enjoy the space and amenities they desire without the financial and maintenance responsibilities of homeownership.
The shift towards luxury single-family rentals is evident in the market, with between 10% to 74% of all single-family homes for rent in the top 100 US cities categorized as luxury properties. As more people seek the high life as renters, the demand for upscale rental properties is expected to continue growing in the coming years.