Home prices are finally starting to drop
In a good sign for homebuyers, the share of existing listings that saw a price drop rose to 18.9% in July — up 3.4% year-over-year and the highest in The last two years. .com price drops are unusual in July, which is typically peak home sales. But this year is different, as sellers struggle to woo lukewarm buyers facing both high costs and high interest rates.
Los Angeles – As the concept of renting expands beyond housing, a new study by Credit Karma finds that a significant number of Americans prefer to rent goods and services as a lifestyle preference rather than out of necessity.
The study, conducted by The Harris Poll, found that nearly 3 in 5 Americans (58%) who rent or lease goods and services say they live a rental lifestyle that is less stressful than worrying. Affordability is based on personal choice.
Americans prefer renting because of its flexibility and savings
According to the study, 28 percent of Americans lease or rent a variety of goods and services, with flexibility as a primary motivation. More than a third of respondents (35%) cited the flexibility that renting offers as the main reason for choosing to rent, allowing them to avoid long-term commitments and adapt to changing needs and circumstances.
In addition, 31% of renters noted that renting or leasing helps them save money, while 27% appreciate the ability to test items before buying.
The appeal of renting goes beyond practical considerations. The study found that 57 percent of Americans who rent or lease goods and services value the flexibility of renting more than the benefits of ownership.
Renting goes beyond housing and affects other aspects of life
While the renting vs. buying debate has traditionally focused on home ownership, this study shows that renting has permeated many other areas of life. From clothing and accessories to cars and electronics, Americans have embraced the rental economy across a wide range of goods and services.
For example, 17% of respondents lease cars, with many citing the desire for a new vehicle every few years or the opportunity to drive a luxury car they cannot afford.
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Fashion-conscious consumers are also turning to rental services to test styles, keep up with trends, and access luxury items. More than 2 in 5 (41%) of those who rent clothing or accessories do so because they believe it is a more affordable option, while others appreciate the sustainability aspect. And 29% said they rent for environmental reasons.
The housing affordability crisis is driving up rents, but attitudes are changing
Not surprisingly, the study found that the main reason Americans rent their homes is because of affordability. Nearly half of renters (48 percent) said they rent because they can’t afford a home, and a quarter (24 percent) cited high mortgage rates as a barrier to home ownership. Despite these financial pressures, the study also shows a shift in attitudes, with 60 percent of Americans who rent or lease goods and services believing that the idea that buying is always better than renting is outdated.
“Over the past decade, we’ve seen the popularity of the ‘rental economy’ as more opportunities to rent goods and services flood the market, giving consumers short-term access to a wealth of items that can meet their needs,” notes Courtney Alf, consumer finance advocate at Credit Karma. It caters to a variety of consumers, whether they are looking for flexibility, minimalism or savings.
First rent lifestyle assessment
While the flexibility and savings associated with renting are appealing, Alev advises consumers to carefully evaluate their financial goals before fully embracing the rental lifestyle.
“If their top priority is saving for a home, but they also lease a luxury vehicle and pay for a monthly clothing subscription service, they may want to crunch the numbers to make sure they’re on track to save. .home,” suggests A.
As the rental economy continues to grow, more Americans are questioning the traditional emphasis on owning, opting instead for the flexibility and benefits that renting offers in many aspects of life.
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This article is based on a Credit Karma study published on August 19.