Sales of luxury homes are rebounding, but a growing number of the ultra-rich are still renting, even if they can afford to buy. Real estate brokers say it's another indication that the housing market has changed in ways they're still trying to grasp.
Some of the reasons for renting among the rich are typical to the broader market: Potential buyers who purchased a home during the boom have been rendered gun-shy by the housing bust. And with mortgage rates predicted to remain near historic lows for the next year, there's no sense of urgency to buy immediately, giving buyers time to be choosy while home prices settle.
But there are additional reasons for renting that are specific to the luxury market. High-end rental properties have become more plentiful, as investors in luxury properties choose to rent them out while waiting for prices to rebound. In New York City, agents are reporting that the rich who own property elsewhere are opting for the low-maintenance lifestyle of renting in the city.
CNBC reports that mansions in tony areas like Miami, Beverly Hills and Manhattan are renting for more than $100,000 a month. Of course, for that price, you get square-footage, primo views of the city skyline or the yacht docks and plenty of amenities like tennis courts and even private discos.
Since the housing bust, have you become more committed to renting or do you still hope to buy a home?
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