From Rent the Runway to Adorn, rental companies are all over Instagram feeds. But why are consumers renting instead of buying, and who is part of this trend? According to new data from market research firm Lab42, most renters are Gen Zers and millennials looking to make practical choices.
The most common reason for renting is testing items before deciding whether to purchase them (57%), needing a temporary solution (55%) and only needing an item for a short time (52%). Other motivating factors are spending less (43%), convenience (42%) and less maintenance and responsibility (41%).
“Our data shows that the renting trend is most prevalent among younger urbanites, mostly for pragmatic reasons… However, this trend may not be able to grow as aggressively as some people have predicted unless more diverse offerings continue to enter the renting space, which could entice more people to try renting and thus accelerate the trend,” said Athos Maimarides, vp of research, Lab42 Research.