Earning a six-figure yearly salary is a distant dream for many. Now imagine paying six figures in monthly rent.
Rents are rising for everyone, including the world's highest earners. Some rich people and celebrities are shelling out more than $100,000 per month to rent out luxury homes, CNBC's Robert Frank reports. They are choosing to rent rather than buy partly because they travel frequently -- in spite of the fact that buying a home could be significantly more affordable, at least in the U.S.
Beyoncé once rented a three-bedroom mansion in Manhattan's Soho neighborhood that is now on the market for $100,000 per month, according to CNBC. In Midtown Manhattan's Waldorf Towers, there are two six-figure rentals, one costing $150,000 per month and the other $135,000 per month. One Beverly Hills, Calif., mansion with a tennis court and disco costs $195,000 per month to rent, according to CNBC.
In the aftermath of the housing bubble, it is more affordable to buy a house than to rent in 98 of the largest 100 metropolitan areas, largely because housing prices have plunged as the rental market has been flooded with people shut out of the housing market due to tighter credit restrictions.
That said, homeownership is cheapest in cities that are perhaps less attractive to the global elite, such as Detroit and Pittsburgh. And in more popular destinations, like New York City and Miami, renting may be entirely within the budgets of the super-rich.