Category: Uncategorized

The world of real estate — like almost every other industry and sector — has seen monumental changes over recent years. Where once buying a home was a long-term goal of every generation, the newer demographics are not as motivated; they prefer to rent. Additionally, millionaires are capitalizing on the benefits of renting more than ever, as evidenced by this eye-opening insight into the phenomenon. 

Homeownership is the one true goal for Americans seeking financial security. At least that’s the advice handed out like candy at Halloween or beads at Mardi Gras. But, in fact, many Americans choose to rent, not because they can’t afford to buy a home, but because they find renting to be advantageous.

A newly published report from RentCafe.com about high earners and millionaire renters indicates that the American household is changing as homeownership is not a priority for everyone, especially not for Millennials and Gen Zs. With 43 million families living in apartments, the highest level in half a century, renting is popular even among high earners who are able to buy, but prefer to rent their home instead. In fact, the most recent analysis of IPUMS (Integrated Public Use Microdata Series) data shows that the number of renters with annual incomes of over $150,000 grew by 82% between 2015 and 2020, faster than renters overall, who inched up by 3.2% during the same time frame. There are now 2.6 million high earners living in rentals in the U.S. and among them is a new ritzy kind of tenant: the millionaire renter.

High-income renters earning $150,000 or more saw rapid growth of 82% in five years — the most significant increase among all income groups — followed by renter households with annual incomes between $100,000 and $150,000. At the same time, middle-income renters grew at a slower pace, but still posted double-digit increases. The only segment to register a drop was that of households earning less than $50,000, which decreased by 11.2%. This is explained by low-income renters moving in with family members when the pandemic started, as well as households whose earnings grew and transitioned to higher income groups.

Why would those who can afford to buy turn to renting? Part of the answer may be found in high home prices, which made homeownership less attractive, especially for those well-heeled residents in pricey locations. This becomes even more obvious when comparing home prices to renter income in the cities with the highest increases in high-income renters: In nine of the 10 cities where the number of top-earning renters leapfrogged considerably, growth in home prices was higher than the national average (29%.)

An even more interesting phenomenon of the past few years is the rise of an unlikely new kind of tenant — the millionaire renter. The number of renter households with incomes of more than $1 million reached a record high of 3,381 in 2020 — three times as many as there were in 2015, when 1,068 millionaires were renting their homes in the U.S., according to the most recent data from IPUMS.

While home prices could be considered an obstacle even for high-income renters, what stops some millionaires from stepping on the homeownership ladder? It might be an issue of comfort and smart investing. Often homebuyers are struck with the realization that their new property needs more maintenance than expected. Couple this with the flexibility of moving between cities to pursue new career opportunities and that explains why even the most affluent sometimes choose to rent their home. Additionally, some high-earners, including some millionaires, prefer to funnel their cash into other types of assets that hold value.

According to a survey from Charles Schwab, Americans consider that an average net worth of $1.1 million represents being “financially comfortable.” And being financially comfortable appears to be a Millennial trait, with this demographic making up a majority (28%) of millionaire renters. For many Millennials of homebuying age and with above-average incomes, lifestyle renting is a better choice than owning. This mindset is mirrored among millionaire Millennials, too, who, unlike their Baby Boomer parents, decide to rent despite having the financial resources to own.

Gen X follows closely behind, making up 23% of millionaire renter homes. As the first generation that redefined and broke away from the American dream of homeownership, Gen Xers initially turned to renting due to the strain brought on by the 2008 housing crisis. Today, they’re following the same lifestyle renting trends as their younger counterparts.

According to IPUMS data, the rental home size of millionaire households varies across the U.S., with three-bedroom homes being the national average. Millionaire renters in Washington, D.C. have the largest homes. On average, they have five bedrooms, followed by Jersey City, NJ with four. Alternatively, in cities like Los Angeles, San Francisco and New York, the average home size is three bedrooms.

Wealthy renters live mainly on the coasts, specifically in California, New York and Washington, DC.

Do you have rental property and need help leveraging its value, finding the ideal tenants, or managing it? Leave your real estate needs in the hands of the Home Solutions experts! We are here to enhance your real estate ventures with personalized, concierge-like services that we will design exclusively for you! Get in touch today by calling (954) 545-3027 or connecting with us here.

In an increasingly fast-paced, busy, and stress-inducing world, it is a small wonder that people are placing more value on making their homes a haven of self-care and wellness. Making a few upgrades to your home can enhance your quality of life while you are there and increase its attractiveness to potential buyers if you were ever to sell. There are rarely such win-win opportunities, and it does not need to break the bank to get there. Consider some of these healthy home upgrades for the new year ahead.

There are countless articles and blog posts focusing on which home improvements will yield the greatest financial return on investment. But there’s another way to look at the ROI conversation: Which home improvements offer the best potential for improving your personal well-being. Those include the five facets of wellness design: health and fitness, safety and security, accessibility, functionality, and comfort and joy. Given the increasing importance of wellness to homebuyers, they might also add to the salability of your home when you do choose to put it on the market.

“It’s understandable why everyone is concerned about maintaining a healthy home,” comments Caroline Danielson, director of showrooms for upscale chain retailer Ferguson Bath, Kitchen & Lighting Gallery, adding that with recent research being made more widely available on the links between home and health, “It is no surprise that many homeowners are considering renovations that improve more than the look of a home.” These can all help homeowners clean faster, cook smarter and rest easier, she notes.

Technology

The topic of technology for wellness – including air and water quality, tunable lighting, and acoustic comfort – are all gaining popularity. “The pandemic brought the interest level up even higher,” observes Josh Christian, CEO of the Home Technology Association trade organization. Covid made the need for healthy indoor air urgent. Wildfires add to that urgency, with their smoke and ash infiltrating homes in nearby regions, and pollution is an ongoing issue in some areas.

“In-room portable air purifiers have exploded in popularity,” Christian shares, “though many homeowners aren’t aware that their whole home can have pure air with specialized air filtration systems.” These installations can be done through home technology integrators, he adds. “A good system can improve the safety of people in a home.” Real-time monitoring capabilities for water quality are not as advanced, Christian notes, “but when water filtration is part of a smart home system, there is extensive testing done up front to identify the best solution for the specific location needs.”

Materials

This is a challenging topic, because so many products offer both wellness benefits like softness underfoot, flame retardants and antimicrobial protection, while unfortunately introducing chemicals that can be damaging to our bodies. “The chemicals that help make a product flexible, light, sturdy have major side effects on our health including cancers, decreased fertility in both men and women and other hormonal related health issues, thyroid disease and elevated cholesterol,” cautions Alison Mears, director of the Healthy Materials Lab at Parsons University.

Looking at one surfacing material you’ll find in every home: countertops, Mears suggests porcelain slab manufactured without lead or asbestos, and natural materials like wood and granite (that may require more upkeep). For flooring, she warns against one of the most popular materials on the market today: luxury vinyl tile. Toxic dioxins are released during their manufacture that an persist in the body for years after exposure, she reveals. “With links to cancer, reproductive disorders, and hormone disruption, they have been called the most toxic man-made substance ever created. [Vinyl] floors also contain phthalates, which are endocrine disruptors. It is important [to] seek healthier alternatives in linoleum, cork, natural rubber, or bio-based materials that avoid any inclusion of vinyl,” she recommends. Options Mears prefer include floating engineered hardwoods with natural finish, ceramic tiles without heavy metal glazes, linoleum and polished concrete with a nontoxic finish.

When it comes to cabinetry, carcinogenic urea formaldehyde is a major element to avoid, Mears advises. NAUF (no added urea formaldehyde) products that reduce its use are a safer option. You’ll also want a cabinet with nontoxic finishes.

Appliances

Danielson points to appliances as one category where technology has always been a trending topic; lately it’s been heavily focused on wellness. “From steam ovens that allow homeowners to effortlessly prepare healthy meals to high-capacity, sanitizing dishwashers with settings to eliminate 99.999% of food soil bacteria by adding a high-heat final rinse to sanitize dishes, appliance technology is becoming more sophisticated.”

She points to a new category too: indoor plant growers. “Herb growing cabinets have captured homeowners’ imaginations,” the retailer observes. “Imagine making a salad with farm-fresh micro greens or cooking a meal and having the ability to use fresh herbs available right in the kitchen. All organic greens offer superior flavor and the best nutrition.”

Another category Danielson notes is the clothing refresher, which adds convenience to time-pressed homeowners. These allow homeowners to care for delicates without using harsh chemicals common in dry cleaning, she notes. They can also safely sanitize bedding between guests and children’s stuffed animals.

Fixtures and Faucets

“With the push for better health and wellness, home fixtures and faucets are now a great way to improve your overall well-being,” Danielson shares, pointing to the latest in water filtration systems and steam showers. The former will help ensure that the household is drinking clean water daily. “In addition to filtering out contaminants like lead or chlorine, these systems can also reduce smells and tastes that make your drinking water less desirable,” she says.

“Steam showers allow users to relax while enjoying aromatherapy benefits. They are especially beneficial for those with respiratory conditions or muscle tension as the warm steam helps open airways and decreases muscle soreness,” Danielson comments.

“The wetroom is seeing a surge in demand due to its frameless, zero entry design concept that creates an open and spacious atmosphere.” These spaces that place a tub within an oversized shower enclosure provide aesthetic appeal and greater accessibility, but as the Ferguson executive notes, their “increased popularity is largely due to their ability to keep germs from hiding in hard-to-reach places and allows for easy maintenance and cleaning.”

In general, she is seeing an increased focus on hygiene-enhancing fixtures. “Touchless faucets can help limit exposure to dirt and bacteria, while providing users with convenience and ease,” she notes.

Lighting

The pandemic has definitely had an impact on lighting. “Homeowners clean the air with a ceiling fan that cools and circulates the air using ultraviolet technology, verified through independent laboratory testing to kill 99.99% of SARS-CoV-2 (causes COVID-19) and other airborne pathogens while safely neutralizing allergens, odors, and fumes,” Danielson says.

She also points to lighted exhaust fans as problem blockers: “By removing moisture and odors effectively with a lighted exhaust fan, homeowners can prevent mold, bacteria and fungi growth on surfaces in bathrooms, laundry rooms or other humidity-prone environments.”

Danielson is bullish on preset dimmers as a great new lighting option for wellness, she says, noting they “make it easy to adjust your lighting levels depending on the time of day and can be set to ensure you have enough light without causing eye strain or discomfort.” This is a particular benefit to older adults for both safety and comfort. “This age-friendly feature ensures that you don’t have to worry about straining your eyes when trying to find something in a dark area or dealing with overly bright lights when going outside at night.”

Circadian lighting, also called tunable lighting or human centric lighting, is another way to boost wellness in this category. Many more manufacturers are offering these solutions now and the category has massively grown in the past four years, HTA’s Christian observes. This has also led to lower prices and more availability, but you get what you pay for when it comes to this technology, he warns.

Outdoor dark sky lighting is another new innovation that helps the health of your household and the planet. Health-wise, it reduces blue light emitted from LED bulbs, linked to sleep disruption in some individuals, Danielson comments.

Chromotherapy is another great innovation, often used in primary bathrooms. “This type of lighting uses certain colors to promote relaxation and healing properties in the body,” the Ferguson executive says. “Using different shades of blue or purple, you can create a calming environment that will reduce stress and anxiety while cleansing yourself or taking a warm bath or shower.”

Wellness Tips from the Pros

“When looking to upgrade your home in a way that promotes health and wellness, it’s important to visit reputable showrooms and work with a designer or contractor you trust,” Danielson recommends. “There are special certifications for wellness and universal design. For example, a certified universal design professional will help homeowners create an environment that emphasizes comfort and safety for all ages and abilities. Homeowners can ask the designer about their certification and determine if their specialty matches their wellness goals.”

Christian highlights the importance of working with professionals too. “Homeowners, architects, interior designers, and builders need a qualified home technology professional to consult about the latest in wellness tech,” he recommends and this consultation needs to start at the beginning of the planning process.

Mears keeps it simple: “Ask the questions: What is it made of? Do I need it?”

Last Words

One of the happy coincidences of climate change action is that can create healthier home interiors too. This urgency is driving local, state and federal legislation and incentives to reduce fossil fuel consumption, as Mears points out. Since their byproducts go into surfacing materials like LVT, cutting back on their use could lead to healthier homes too. Cutting greenhouse-causing emissions helps drive incentives to swap gas cooktops with induction models. What’s healthy for the planet can be healthy for you and your home.

You don’t have to be a billionaire to make healthy home changes either. “What we are learning is that affordability varies a lot based on budget, region and creativity. And a lot of what we can do to decrease costs or direct the budget to better materials is to change our practice,” Mears shares. She also notes that a simpler material palette might allow for higher volume in selected products and possibly offer better pricing. Being strategic with choices – e.g., a one-coat paint and primer combo – can reduce labor costs and, of course, working with a wellness designer who has relationships with healthy products manufacturers and flexible margins can save the homeowner money.

Resources

• Healthier Cabinetry – Healthy Materials Lab
• Materials Collections – Healthy Materials Lab
• Six Classes: A new Way to Eliminate Harmful Chemicals – Green Science Institute
• Acoustics Guide – Home Technology Association
• Technology Resource Guide — Home Technology Association

AUTHOR’S NOTE: