Renting: The New Normal for Everything from Cars to Caskets

The days of owning everything from cars and apartments to clothing and furniture may be numbered. According to a report by Intuit Credit Karma, more Americans are choosing to rent goods and services due to affordability and lifestyle preferences. Beyond traditional rentals like cars and apartments, the rental market has expanded to include everything from power tools to designer handbags and even funeral caskets.

Currently, 28% of adults routinely rent goods and services, a figure that rises to 47% when housing is included. Higher prices are the primary driver behind the growth in renters, but some people simply prefer the flexibility and convenience of renting over owning. This shift towards a “rent-first” lifestyle is reshaping how Americans consume goods and services.

Renting is no longer just about affordability. A recent survey found that 58% of respondents value renting for its flexibility and ability to avoid overconsumption. This is particularly important for Gen Z and millennials, who are increasingly concerned about their consumption habits’ environmental and social impact.

“Renting is a great option for many people,” says Florida-based certified financial planner Carolyn McClanahan. “Some people do great renting clothes and, for special events, this can be good. However, if you know you have a lot of special events, a few really good [owned] pieces can last a long time.”

Clothing costs have skyrocketed due to inflation, with men’s and women’s apparel prices increasing by 15% and 13.3% since July 2020. Meanwhile, the allure of car leasing may be fading. While monthly lease payments are often lower, long-term costs can be higher than financing a car. Leased cars also often come with built-in service costs, mileage restrictions, and hefty fees for excessive wear and tear. If you finance a car, you’ll own it at the end of the loan term.

Because housing is often the most significant expense, renting may be a practical option. “Unless you are absolutely sure you are dedicated to being in a home for at least five years, you should definitely rent,” McClanahan advises.