Why the wealthy are renting homes instead of buying in New York City

You don’t have to believe Manhattan’s brokers when they say the wealthy have turned to renting — the numbers say it all. The amount of households racking in at least $750,000 and choosing to rent went up 10.5% between 2018 and 2022, according to the recent Federal Reserve’s Survey of Consumer Finances. Not only are the well-heeled choosing to rent in the city, they’re doing so strategically.“People who work in finance, tech and fashion focus on specific buildings, like a club that they want ‘in on’ — buildings like 220 Central Park South and 445 Greenwich,” says Francis Katzen of Douglas Elliman, who is marketing the artsy supertower 53W53. The home of real estate billionaire Ken Griffin (who paid a record $238 million for his slice of the tower), 220 CPS is a vertical country club of who’s who: from hedge funders and defense CEOs to entertainment nabobs and the 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 into an exclusive community of billionaires and global influencers,” says Jessica Campbell of Nest Seekers.

“What really drives demand is the access to an elite circle of residents, where you never know which business titan or global leader you might meet in the elevator.” Campbell is listing No.57B, a 3,211-square-foot, three-bedroom, three-and-a-half-bathroom spread in the building for $90,000 per month. Other developers have also embraced the superluxe rental-meets-clubhouse trend and are adding inventory tailored to those who want every waking moment to be a shoulder rubbing opportunity.

An international set of business titans gather at Fasano at 815 Fifth Ave.— part private members club, part residence. Here a 650-square-foot one-bedroom “clubhouse” unit goes for $50,000 per month (with a block of four duplex residences with three bedrooms asking $140,000 a month). You’ll get Thierry Despont furnishings, a...