- Nearly 3 in 5 Americans (58%) who rent/lease goods/services say they live a rent-first lifestyle (choosing to rent as a personal choice and not because of outside pressures or affordability reasons).
- More than a quarter of Americans (28%) rent/lease goods/services – the top reason being that they like the flexibility renting allows them (35%).
- Nearly 3 in 5 Americans (57%) who rent/lease goods/services care more about the flexibility of renting than they do the benefits of ownership.
The rent vs buy discourse typically centers around the home, often hitting on affordability and what’s considered to be the better financial investment. However, over time we’ve seen renting permeate into other aspects of our lives. Today, you can rent everything from clothes and furniture to cars and sporting equipment – and plenty of people find value in doing so. While money and affordability might be motivating factors, in many cases, renting is a lifestyle choice.
According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,042 U.S. adults ages 18 and older, more than 1 in 4 Americans (28%) rent or lease goods/services, whether that be their car (17%), clothing or accessories (9%), electronics (8%), furniture (7%), etc. When factoring in housing, the percentage of American renters/leasers jumps to 47%.
Owning isn’t all it’s cracked up to be for many Americans who rent/lease goods or services. Of those, 58% say they live a rent-first lifestyle, defined as choosing to rent as a personal choice and not because of outside pressures or affordability reasons. What’s driving the decision to rent/lease? The top reason comes down to the flexibility that renting allows (35%), followed by being better able to save money (31%), wanting to try things out first before deciding whether to make a purchase (27%), and to better avoid overconsumption (e.g. buying too many things, spending too much money, wasting) (21%).
Whatever peoples’ reasons are for choosing to rent over buy, nearly 3 in 5 Americans who rent/lease goods or services (58%) say they find more value in renting than they do buying for most applicable things in their lives, and 64% don’t subscribe to the notion that renting translates to throwing away money.
Leasing fulfills some car connoisseurs’ dreams
For some, a car is a means to an end, while others care a lot about the car they drive. Roughly 1 in 6 Americans (17%) lease a car, and among them, 42% do so in order to get a new car every few years. To make sure they’re investing in the best car for them, a quarter of those who lease a car (25%) say they do so they can test out the car they’re considering buying to ensure they like it. And, for car buffs who don’t want to break the bank, 18% say it’s because leasing allows them to drive a luxury car they cannot afford to purchase.
Peoples’ decision to lease also stems from more practical reasons, which makes sense when you consider a car is often one of many Americans’ most costly assets. Nearly one third (32%) of car leasers say they do so to save money on repairs and maintenance, while 26% say they do so because they don’t want the stress that comes with having to manage repairs and maintenance (e.g. finding a repair shop). More than a quarter (28%) choose to lease their car because they believe that leasing is the more affordable option, while 1 in 9 (11%) don’t think buying a car is a good investment.
Temporary finds let fashionistas shine
Of those who rent clothes and/or accessories, more than 2 in 5 (41%) do so because they believe it’s the more affordable option. Although money aside, renting fashion merchandise has its upside for fashion-forward consumers – and why many are choosing to rent these items – including the ability to experiment with different styles (35%), wearing luxury items that they otherwise could not afford to buy (34%) and being better positioned to keep up with fashion trends (22%).
Renting also appeals to people who practice a “less is more” lifestyle, including those who are environmentally conscious. The belief that renting clothes and/or accessories is more sustainable than buying new ones is a reason why 29% rent those items, and the same proportion say they rent because they typically only wear an item a few times. Ultimately, doing so supports more than a quarter of peoples’ minimalist lifestyle – 26% who say they rent in order to have less clutter and more closet space.
Renting a home has more to do with affordability than flexibility
It may not come as a surprise that the number one reason Americans who rent their homes do so is because they cannot afford to buy (48%), followed by roughly a quarter (24%) who say it’s because mortgage rates are too high to make buying worthwhile. In fact, the housing affordability crisis has gotten so dire that half of Americans who rent/lease goods or services (50%) believe homeownership is only achievable for the wealthy.
Other money-related reasons Americans who choose to rent their homes do so stem from their belief that they’re saving money by renting (16%), while more than 1 in 7 (15%) say it’s because renting allows them to spend money on other things they care about more, such as travel, shopping and dining out. Others just cannot justify the cost that comes with buying and maintaining a home (16%), and about 1 in 8 (13%) believe that buying a home doesn’t make as much financial sense as it used to.
In some cases, people just don’t want the added stress or responsibility that comes with owning a home, especially if they’re unsure about where they want to lay down roots. One in five (20%) home renters say they choose to rent because they feel less stressed renting, while others do so because they don’t want the responsibility of maintaining a home, or they don’t plan to be in their area long term (both 18%).
Renters ditch the status quo
No matter what drives people to subscribe to a rent-first lifestyle, 3 in 5 Americans who say they rent/lease goods or services (60%) think the belief that buying is always better than renting is outdated.
“Over the last decade we’ve seen the ‘rental economy’ gain popularity as more opportunities to rent goods and services have flooded the market, offering consumers short-term access to a plethora of items such as clothes, cars, furniture, appliances, electronics and so on,” said Courtney Alev, consumer financial advocate at Credit Karma. “Renting can serve various needs for consumers, whether they’re seeking flexibility, minimalism or savings. That’s not to diminish the current housing affordability crisis that’s standing in the way of many renters’ ability to achieve homeownership. Whatever the case may be, before fully embracing a rent-first lifestyle, consumers should evaluate all of their options to see how they stack up to their goals and aspirations. For instance, if their top priority is to save to buy a home, but they also lease a luxury vehicle and pay a monthly clothing subscription service, they may want to crunch the numbers to make sure they’re on the best path forward to saving for a home.”
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from June 18-21, 2024 among 2,042 U.S. adults ages 18 and older, among whom 979 rent or lease goods/services or a home and 535 rent or lease goods/services not including a home. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.