Why the Rich Rent Homes Instead of Buying in New York City

You shouldn’t believe Manhattan realtors when they say the rich are back to renting—the numbers say it all.

The number of households making at least $750,000 and choosing to rent increased by 10.5% between 2018 and 2022, according to the Federal Reserve’s latest Survey of Consumer Finances.

Not only are they choosing to rent in the city, they are doing so strategically.

In the billionaires club

“People who work in finance, technology and fashion tend to focus on specific buildings, like a club, that they want to be ‘in’ on — buildings like 220 Central Park South and 445 Greenwich,” says Frances Katzen of Douglas Elliman, which is marketing the supertower. artistic. 53W53.

Home to real estate billionaire Ken Griffin (who paid a record $238 million for his share of the tower), 220 CPS is a who’s who of the country’s vertical club: from defense financiers to defense CEOs to entertainment nabobs and musician Sting.

“My clients are willing to pay a premium for 220 Central Park South because it offers more than just luxury living — it’s a gateway to an exclusive community of billionaires and global influencers,” says Jessica Campbell of Nest Seekers. “What’s really driving demand is access to an elite circle of residents, where you never know which business titan or global leader you might meet in the elevator.”

Campbell has ranked no. 57B, a 3,211-square-foot, three-bedroom, three-and-a-half-bathroom space in the building for $90,000 a month.

‘Like-minded’ business titans

Other developers have also embraced the superluxe rental-meets-club trend and are adding inventory tailored to those who want every waking moment to be a shoulder-rubbing opportunity. An international group of business titans gather at Fasano’s at 815 Fifth Ave. — part private members’ club, part residence.

Here, a 650-square-foot one-bedroom clubhouse unit goes for $50,000 a month (with a block of four three-bedroom duplex residences asking $140,000 a month).

“What really drives demand is access to an elite circle of residents, where you never know which business titan or global leader you might meet in the elevator.”

Jessica Campbell of Nest Seekers

You’ll get Thierry Despont furnishings, a sculptural staircase, full staff and views of Central Park—but even better, the home comes with “like-minded people,” says Erin Boisson Aries of Douglas Elliman, which is marketing the building. “We have a restaurant and it’s very social,” she says. “Although the minimum stay is 30 days, we have people staying for a year and up to three years.”

Global playground for the rich

Boisson Aries is also the broker behind another innovative, high-priced rental aimed at drivers on the West Side Highway.

Maison Hudson at 401 West St. it’s part of The Collection – a group of similar properties in key locations where the global rich love to chill: London’s Belgravia; St. Barts; French playgrounds Courchevel, Saint-Jean-Cap-Ferrat and Paris.

It’s the cat climbing the stairs.

The New York location currently offers Residence 7, a 2,205-square-foot, two-bed, three-bath unit for $100,000 a month. Designed by Thomas Juul-Hansen with furnishings by Giorgetti and Battaglia, all the perks of living in a five-star hotel, the real comfort here is the friendliness offered by a boutique, 10-unit building, says Boisson Aries.

“It is discreet. It’s private. It is exclusive. It’s also so intimate and personalized,” she says. “Once you’ve tried New York, you want to go stay at the cottage in St. Barts.” Bottom line, here’s the kit – just be prepared to spend around $450,000 a week during the holidays.