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The Rise of Millionaire Renters in Unlikely California Cities
California has long been known for its high-net-worth cities, with San Francisco and San Jose standing out as hubs for millionaires. These cities have historically attracted high earners due to their booming tech industries and vibrant business environments. However, a recent trend shows that the phenomenon of millionaire renters is no longer confined to these major metropolitan areas.
Exponential Growth in Smaller Cities
Since 2019, the number of millionaire renters in smaller California cities has grown exponentially, even in unexpected locations. A report analyzing census data from apartment rental website RentCafe highlights this shift. For example, the small coastal city of Oxnard gained 93 millionaire renters between 2019 and 2023. Once known primarily as a gateway to the Channel Islands, Oxnard had zero millionaire renters just six years ago.
The pandemic played a significant role in this change. Remote work became more common, allowing affluent professionals to seek more space and cleaner air outside of crowded urban centers. According to Alexandra Both, a research analyst at RentCafe, “The COVID-19 pandemic accelerated urban flight, pushing affluent professionals to look for more space and cleaner air.”
Bedroom Communities Gain Popularity
Cities like Santa Rosa, located in Sonoma County, also saw an increase in millionaire renters, with 47 new additions. These cities are often referred to as “bedroom communities” to larger metropolitan areas. They offer a slower-paced lifestyle while still maintaining proximity to major cities. Oxnard, for instance, is about an hour from downtown Los Angeles, and Santa Rosa is roughly an hour away from San Francisco.
This shift is partly driven by soaring home prices in Los Angeles and San Francisco, which make renting more appealing for high-income individuals who want to preserve liquidity. As both cities become increasingly unaffordable, many are choosing to rent instead of buy, especially if they can work remotely.
Expansion Beyond Major Metros
Beyond the traditional urban centers, other cities are also experiencing growth in their millionaire renter populations. Santa Maria, an agricultural city known for its wine production, added 44 millionaire renters between 2019 and 2023. Located on the Central Coast, it is slightly inland and north of Vandenberg Space Force Base, a growing hub for SpaceX employees.
Similarly, Merced, a small agricultural city near Yosemite, gained 32 millionaire renters during the same period. The city has seen a tourism boom over the past decade and is home to the fastest-growing public research university in the nation. This has attracted many transplants looking for affordable housing and a walkable, historic downtown.
Growth in Urban Centers
Even in larger urban centers like Sacramento and Stockton, the number of millionaire renters has increased. Sacramento added 32, while Stockton saw 16 new millionaire renters. Overall, the U.S. has witnessed a more than 200% increase in millionaire renters between 2019 and 2023. In cities like Los Angeles and San Francisco, the numbers have tripled.
The state’s millionaire homeowner population is also on the rise. San Luis Obispo, for instance, has seen its count grow 17 times since 2019.
Conclusion
The trend of millionaire renters expanding beyond traditional high-net-worth cities reflects broader shifts in lifestyle preferences and economic realities. With remote work becoming more common, affordability concerns, and the desire for a better quality of life, more people are choosing to live in smaller, less expensive cities while still maintaining access to major job markets. This transformation is reshaping the real estate landscape across California and beyond.
