Generation Rent: How Millennials are Fueling the Rental Economy
Connect with us

Demographics

Generation Rent: How Millennials are Fueling the Rental Economy

Published

on

It’s long been said that millennials have the power to disrupt and reshape entire industries.

Most recently, this effect has been seen in the retail landscape, where millennial spending habits are setting the tone for the market’s future.

Not only does the millennial generation demand the convenience of making instant purchases—but they can now rent almost anything they want, anytime, and anywhere.

Visualizing the Growth of the Rental Economy

Today’s infographic from Adweek takes a deeper look at the consumer goods rental economy, and the potential long-term impact of this shift in buyer behavior.

Although the current market for rentals is still in its early stages, the sheer momentum that the industry has gained in the last year is enough to threaten even the largest retailers—forcing them to reconsider their own business models.

millennial generation renting

The data for the visualization above comes from market research company Lab 42. In a survey of 500 people, they found that 94% of the U.S. population has participated in the sharing economy in one way or another.

While the sharing economy spotlight typically shines on global behemoths like Airbnb and Uber, the research used to populate this infographic focuses on renting consumer goods for a short period of time, as a sub-segment of the sharing economy.

The Renting Revolution

Offerings within the rental sector have exploded over the last decade, with furniture being the number one category that consumers rent.

According to the infographic, reasons for renting furniture include:

  • Temporary housing: 45%
  • Expensive upfront costs: 43%
  • Testing products before committing: 41%
  • Hosting events at home: 35%
  • Moving into a new home: 29%
  • Redesigning a house: 27%

Other products that consumers rent include gaming systems, clothes, tools, and technology. Female renters are more likely to rent furniture, clothes, and jewelry, while male renters are more likely to rent tools and gaming systems.

Renting goods is predominantly done on an as-needed basis. The Lab 42 report states that for clothing, 77% of respondents indicate that they either rent, or would rent for a formal event.

The End of Ownership?

Despite the common misconception that millennials are driven by emotional needs, the reasons behind why they rent consumer goods are much more pragmatic.

  • Test things before purchasing: 57%
  • Need a temporary solution: 55%
  • Need an item or a service for a short time-frame : 52%
  • Less expensive than buying: 43%
  • More convenient than buying: 42%

Further, only 6% said that they rent because they do not like owning things. This tells us that the rental economy does not indicate the end of ownership, but rather, provides a strategy for consumers to try before they buy.

Attitudes Towards Sustainability

According to the research, very few millennials choose to rent consumer goods because it is better for the environment. However, Nielsen claim that 73% of millennials are willing to pay more money for sustainable offerings—impacting both retail and rental industries.

As evidence of this, Ikea will test a range of subscription-based leasing offers in all 30 of its markets by 2020 in a bid to appeal to environmentally conscious consumers and boost its sustainability credentials. If Ikea’s evolving business model is a success, it could open the floodgates for others to follow suit.

A Promising Market

In the clothing rental space, brands like Rent the Runway pave the way, but there has also been an explosion of startups entering the market in the last year.

One example is the monthly subscription service Nuuly. The company offers consumers access to over 100 third-party brands and vintage items. Consumers can borrow up to six items a month for $88. Similarly, American Eagle’s Style Drop program rents out the latest collections for a flat monthly fee of $49.95.

As more companies incorporate short-term rental services into their offerings, more millennials will shift their behavior from buying to renting—disrupting the traditional retail business model as we know it. With that being said, the impact of millennials having it all, and owning none of it, is yet to be determined.

Support the Future of Data Storytelling

Sorry to interrupt your reading, but we have a favor to ask. At Visual Capitalist we believe in a world where data can be understood by everyone. That’s why we want to build the VC App - the first app of its kind combining verifiable and transparent data with beautiful, memorable visuals. All available for free.

As a small, independent media company we don’t have the expertise in-house or the funds to build an app like this. So we’re asking our community to help us raise funds on Kickstarter.

If you believe in data-driven storytelling, join the movement and back us on Kickstarter!

Thank you.

Support the future of data storytelling, back us on Kickstarter
Click for Comments

Demographics

Visualizing the World’s Most Popular Religions

This graphic shows a breakdown of the world’s major religions, and how much of the global population follows each one.

Published

on

World's Religions

Visualizing the World’s Most Popular Religions

According to some estimates, there are over 4,000 religions, faiths groups, and denominations that exist around the world today. Researchers and academics generally categorize the world’s religions into five major groups: Christianity, Islam, Buddhism, Hinduism, and Judaism.

This graphic by Chit Chart visualizes the most popular religions around the world, using the latest available data from Index Mundi’s world demographics.

In addition to the five major religious groups, the graphic includes two more categories: one for a collective of Folk religions and another for people who are unaffiliated with a religion.

The Religions with the Most Followers

Although the number of people who follow a religion has decreased in recent decades, 82.8% of the global population still identifies with one of the world’s major religions.

Here’s a breakdown of the most popular religions, ranked by their following as a percentage of the world’s population:

RankReligion% of World’s Population
1Christian31.4%
2Muslim23.2%
3Unaffiliated16.4%
4Hindu15.0%
5Buddhist7.1%
6Folk Religions5.9%
7Jewish0.2%
8Other0.8%

Christianity has the largest following with approximately 31% of the global population. Muslims make up the second-largest religious group, accounting for 23.2% of the world’s population.

Roughly 16.4% of the global population is unaffiliated with a religion. This figure exceeds the percentage of people who identify with Hinduism (15%), Buddhism (7.1%), Folk Religions (5.9%), or Judaism (0.2%).

The World’s Religions from Oldest to Newest

Hinduism is considered the oldest religion in the world, originating in the Indus River Valley (modern-day Pakistan) circa 7000 BCE.

While Judaism came after Hinduism, it is thought to be the oldest of the three monotheistic Abrahamic faiths, making it older than Christianity and Islam.

It began circa 2000 BCE in the Southern Levant (modern-day Israel, Palestine, and Jordan). By contrast, Christianity was founded in the 1st century and began as a movement within Judaism.

Scholars typically date the creation of Islam to the 7th century, making it the youngest of the world’s major religions on this list. Islam was established in Mecca (modern-day Saudi-Arabia).

One religion that’s not included on this list is Sikhism. Founded in the late 15th century, it’s relatively new, especially compared to other religions like Hinduism or Judaism. Yet, despite being new, Sikhism has a large following—according to some estimates, there are over 25 million Sikhs worldwide.

What are Folk Religions?

A folk religion is defined as an ethnic or cultural practice that exists outside the theological doctrine of organized religions.

Lacking sacred texts, Folk religions are more concerned with spirituality than rituals or rites. Examples of Folk religions include Native American traditions, Chinese folk religions, and traditional African religions.

Since Folk religions are less institutionalized, they are especially challenging to measure and often excluded from surveys. With that said, an estimated 5.9% of the global population (approximately 430 million people) practice a Folk religion.

The Fastest-Growing Religions

While Islam is the newest of the big five religions, it’s currently the world’s fastest-growing one too. For context, here’s the estimated percent change among the seven religion categories, between 2015 and 2060:

RankReligious GroupEst. % change in population size (2015-2060)
1Muslims70%
2Christians34%
3Hindus27%
4Jews15%
5Folk religions5%
6Unaffiliated3%
7Buddhists-7%

Islam’s rapid growth means it may surpass Christianity as the world’s largest religion within the next half-century. What’s causing this growth?

According to Pew Research Center, the main reason is simply demographics—on average, Muslim women have 2.9 children, which the average of all non-Muslims is 2.2.

Muslims are also concentrated in Africa and the Middle East, the two regions predicted to have the highest population increases in the next few decades.

Continue Reading

Demographics

Mapped: A Decade of Population Growth and Decline in U.S. Counties

This map shows which counties in the U.S. have seen the most growth, and which places have seen their populations dwindle in the last 10 years.

Published

on

A Decade of Population Growth and Decline in U.S. Counties

There are a number of factors that determine how much a region’s population changes.

If an area sees a high number of migrants, along with a strong birth rate and low death rate, then its population is bound to increase over time. On the flip side, if more people are leaving the area than coming in, and the region’s birth rate is low, then its population will likely decline.

Which areas in the United States are seeing the most growth, and which places are seeing their populations dwindle?

This map, using data from the U.S. Census Bureau, shows a decade of population movement across U.S. counties, painting a detailed picture of U.S. population growth between 2010 and 2020.

Counties With The Biggest Population Growth from 2010-2020

To calculate population estimates for each county, the U.S. Census Bureau does the following calculations:

A county’s base population → plus births → minus deaths → plus migration = new population estimate

 
From 2010 to 2020, Maricopa County in Arizona saw the highest increase in its population estimate. Over a decade, the county gained 753,898 residents. Below are the counties that saw the biggest increases in population:

RankCountyPoint of ReferenceStatePop. Growth (2010–2020)
#1Maricopa CountyPhoenix, ScottsdaleArizona+753,898
#2Harris CountyHoustonTexas+630,711
#3Clark CountyLas VegasNevada+363,323
#4King CountySeattleWashington+335,884
#5Tarrant CountyFort Worth, ArlingtonTexas+305,180
#6Bexar CountySan AntonioTexas+303,982
#7Riverside CountyRiverside, Palm SpringsCalifornia+287,626
#8Collin CountyPlanoTexas+284,967
#9Travis CountyAustinTexas+270,111
#10Hillsborough CountyTampaFlorida+264,446

Phoenix and surrounding areas grew faster than any other major city in the country. The region’s sunny climate and amenities are popular with retirees, but another draw is housing affordability. Families from more expensive markets—California in particular—are moving to the city in droves. This is a trend that spilled over into the pandemic era as more people moved into remote and hybrid work situations.

Texas counties saw a lot of growth as well, with five of the top 10 gainers located in the state of Texas. A big draw for Texas is its relatively affordable housing market. In 2021, average home prices in the state stood at $172,500$53,310 below the national average.

Counties With The Biggest Population Drops from 2010-2020

On the opposite end of the spectrum, here’s a look at the top 10 counties that saw the biggest declines in their populations over the decade:

RankCountyPoint of ReferenceStatePop. Growth (2010–2020)
#1Cook CountyChicagoIllinois-90,693
#2Wayne CountyDetroitMichigan-74,224
#3Cuyahoga CountyClevelandOhio-50,220
#4Genesee CountyFlintMichigan-20,165
#5Suffolk CountyLong IslandNew York-20,064
#6Caddo ParishShreveportLouisiana-18,173
#7Westmoreland CountyMurrysvillePennsylvania-17,942
#8Hinds CountyJacksonMississippi-17,751
#9Kanawha CountyCharlestonWest Virginia-16,672
#10Cambria CountyJohnstownPennsylvania-14,786

The largest drops happened in counties along the Great Lakes, including Cook County (which includes the city of Chicago) and Wayne County (which includes the city of Detroit).

For many of these counties, particularly those in America’s “Rust Belt”, population drops over this period were a continuation of decades-long trends. Wayne County is an extreme example of this trend. From 1970 to 2020, the area lost one-third of its population.

U.S. Population Growth in Percentage Terms (2010-2020)

While the map above is great at showing where the greatest number of Americans migrated, it downplays big changes in counties with smaller populations.

For example, McKenzie County in North Dakota, with a 2020 population of just 15,242, was the fastest-growing U.S. county over the past decade. The county’s 138% increase was driven primarily by the Bakken oil boom in the area. High-growth counties in Texas also grew as new sources of energy were extracted in rural areas.

The nation’s counties are evenly divided between population increase and decline, and clear patterns emerge.

population changes in u.s. counties (%)

Pandemic Population Changes

More recent population changes reflect longer-term trends. During the COVID-19 pandemic, many of the counties that saw the strongest population increases were located in high-growth states like Florida and Texas.

Below are the 20 counties that grew the most from 2020 to 2021.

RankCountyPoint of ReferenceStatePop. Growth (2020–2021)
#1Maricopa CountyPhoenixArizona+58,246
#2Collin CountyPlanoTexas+36,313
#3Riverside CountyRiverside, Palm SpringsCalifornia+35,631
#4Fort Bend CountySugar LandTexas+29,895
#5Williamson CountyGeorgetownTexas+27,760
#6Denton CountyDentonTexas+27,747
#7Polk CountyLakelandFlorida+24,287
#8Montgomery CountyThe WoodlandsTexas+23,948
#9Lee CountyFort MyersFlorida+23,297
#10Utah CountyProvoUtah+21,843
#11Pinal CountySan Tan ValleyArizona+19,974
#12Clark CountyLas VegasNevada+19,090
#13Pasco CountyNew Port RicheyFlorida+18,322
#14Wake CountyRaleighNorth Carolina+16,651
#15St. Johns CountySt. AugustineFlorida+15,550
#16Hillsborough CountyTampaFlorida+14,814
#17Bexar CountySan AntonioTexas+14,184
#18Ada CountyBoiseIdaho+13,947
#19Osceola CountyKissimmeeFlorida+12,427
#20St. Lucie CountyFort PierceFlorida+12,304

Many of these counties are located next to large cities, reflecting a shift to the suburbs and larger living spaces. However, as COVID-19 restrictions ease, and the pandemic housing boom tapers off due to rising interest rates, it remains to be seen whether the suburban shift will continue, or if people begin to migrate back to city centers.

Continue Reading

Subscribe

Popular