Generation Rent: How Millennials are Fueling the Rental Economy
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Demographics

Generation Rent: How Millennials are Fueling the Rental Economy

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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.

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Misc

All World Languages in One Visualization

See the world’s major languages broken down by country in this stunning visualization.

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All World Languages, By Native Speakers

View a high resolution version of today’s graphic by clicking here.

Languages provide a window into culture and history. They’re also a unique way to map the world – not through landmasses or geopolitical borders, but through mother tongues.

The Tower of Babel

Today’s infographic from Alberto Lucas Lopez condenses the 7,102 known living languages today into a stunning visualization, with individual colors representing each world region.

Only 23 languages are spoken by at least 50 million native speakers. What’s more, over half the planet speaks at least one of these 23 languages.

Chinese dominates as a macrolanguage, but it’s important to note that it consists of numerous languages. Mandarin, Yue (including Cantonese), Min, Wu, and Hakka cover over 200 individual dialects, which vary further by geographic location.

CountryNative Chinese speakers (millions)
🇨🇳 China1,152.0
🇹🇼 Taiwan21.8
🇭🇰 Hong Kong SAR6.5
🇲🇾 Malaysia5.1
🇸🇬 Singapore1.8
🇹🇭 Thailand1.2
🇻🇳 Vietnam0.9
🇵🇭 Philippines0.7
🇲🇲 Myanmar0.5
🇲🇴 Macau SAR0.5
Other6.0
Total1,197 million

Chinese is one of the most challenging languages for English speakers to pick up, in part due its completely unfamiliar scripts. You’d have to know at least 3,000 characters to be able to read a newspaper, a far cry from memorizing the A-Z alphabet.

Spanglish Takes Over

After Chinese, the languages of Spanish and English sit in second and third place in terms of global popularity. The rapid proliferation of these languages can be traced back to the history of Spanish conquistadors in the Americas, and British colonies around the world.

Animation: Map of Colonization (1492 – 2008):
Colonization Map

Today, Spanish has 399 million native speakers, but these are mostly concentrated in Latin America. English has 335 million native speakers under its belt, with a widespread reach all over the globe.

Two Worlds, One Family

While the visualization makes all the world languages seem disparate, this linguistic family tree shows how they grew from a common root. It also explains how languages can evolve and branch out over time.

Language Tree

Created by Minna Sundberg. Full version.

This linguistic tree also includes many languages that are not on the large visualization of 23 mother tongues. Some of them might be considered endangered or at risk today, such as Catalan or Welsh. However, with globalization, a few interesting linguistic trends are arising.

1. Language revival
Certain enclaves of marginalized languages are being preserved out of pride for the traditional and cultural histories attached.

While Catalan was once banned, its rebirth is a key marker of identity in Barcelona. More than 150 universities teach Catalan worldwide. In the case of Welsh, a mammoth university project plans to make sure it does not die out. Researchers are compiling ten million Welsh words to preserve the past, present, and future of the language.

2. Language forecast
At this point in time, English is the lingua franca – adopted as a common language among speakers with different mother tongues. However, this status might soon be fuzzier as demographic trends continue.

The rise of China is an obvious one to consider. As China continues to increase its economic might and influence, its languages will proliferate as well.

At the same time, 26 African countries are projected to double their current size, many of which speak French as a first language. One study by investment bank Natixis suggests that Africa’s growth may well bring French to the forefront – making it the most-spoken language by 2050.

Could French provide a certain je ne sais quoi that no other world language can quite replace?

This post was first published in 2018. We have since updated it, adding in new content for 2021.

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Demographics

Ranked: The World’s Fastest Growing Cities

Nearly 60% of the world’s population lives in cities and this trend is not slowing down—take a look at the world’s 20 fastest growing cities.

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fastest growing cities

Ranked: The World’s Fastest Growing Cities

By 2025, the world’s population will reach over 8.1 billion people.

Most of that population growth will be concentrated in cities across Africa and Asia. To help paint a detailed picture, this map uses data from the United Nations to rank the top 20 fastest growing cities in the world in terms of average annual growth rate from 2020 to 2025.

Full Speed Ahead

The majority of the world’s fastest growing cities are located in Africa—in fact, 17 of the 20 are located on the continent, with four of the 20 cities being located in Nigeria specifically.

Population growth is booming across the entire continent, as many countries retain high birth rates. According to the World Bank, the 2019 fertility rate (births per woman) in Sub-Saharan Africa was 4.6, compared to the global fertility rate of 2.4.

CityCountryContinentAnnual Growth (2020-2025p)
Gwagwalada🇳🇬 NigeriaAfrica6.46%
Kabinda🇨🇩 Democratic Republic of CongoAfrica6.37%
Rupganj🇧🇩 BangladeshAsia6.36%
Lokoja🇳🇬 NigeriaAfrica5.93%
Uige🇦🇴 AngolaAfrica5.92%
Bujumbura🇧🇮 BurundiAfrica5.75%
Songea🇹🇿 TanzaniaAfrica5.74%
Xiongan🇨🇳 ChinaAsia5.69%
Potiskum🇳🇬 NigeriaAfrica5.65%
Bunia🇨🇩 Democratic Republic of CongoAfrica5.63%
Tete🇲🇿 MozambiqueAfrica5.56%
Cuito🇦🇴 AngolaAfrica5.48%
Hosur🇮🇳 IndiaAsia5.38%
Abomey-Calavi🇧🇯 BeninAfrica5.27%
Nnewi🇳🇬 NigeriaAfrica5.18%
Malanje🇦🇴 AngolaAfrica5.17%
Mbouda🇨🇲 CameroonAfrica5.16%
Quelimane🇲🇿 MozambiqueAfrica5.14%
Kampala🇺🇬 UgandaAfrica5.14%
Goma🇨🇩 Democratic Republic of CongoAfrica5.14%

Nigeria’s economy is largely based on petroleum which has resulted in the country becoming one of the strongest economies in Africa. This, coupled with a high birth rate and a resulting young population, has given the country a strong and rising workforce.

However, the population growth in Nigeria is both a blessing and a curse. The success of the economy, among other factors, has resulted in excessive rural-to-urban migration. This mass exodus from rural areas has led to less farming, which means the country now needs to import basic food staples at a high cost.

In Mozambique, Tete and Quelimane are growing 5.56% and 5.14% respectively. The country is expected to experience strong economic growth after facing contractions due to the pandemic. Forecasts predict that the Mozambiques’s economy will grow 4% by 2022.

Implications of Fast Growth

All of the top 20 fastest growing cities are located in either Africa or Asia, and they are far outpacing growth on other continents, such as Europe, for example.

Fastest Growing Cities: Europe vs. Global

Europe's Fastest Growing CitiesGrowth RateWorld's Fastest Growing CitiesGrowth Rate
🇷🇺 Balashikha, Russia2.01%🇳🇬 Gwagwalada6.46%
🇷🇺 Tyumen, Russia 1.88%🇨🇩 Kabinda6.37%
🇦🇱 Tiranë (Tirana), Albania1.63%🇧🇩 Rupganj6.36%
🇳🇴 Oslo, Norway 1.38%🇳🇬 Lokoja5.93%
🇷🇺 Sochi, Russia1.33%🇦🇴 Uige5.92%
🇬🇧 Coventry-Bedworth, UK1.32%🇧🇮 Bujumbura5.75%
🇸🇪 Stockholm, Sweden1.25%🇹🇿 Songea5.74%
🇨🇭 Lausanne, Switzerland1.23%🇨🇳 Xiongan5.69%
🇷🇺 Krasnodar, Russia1.22%🇳🇬 Potiskum5.65%
🇷🇺 Surgut, Russia1.17%🇨🇩 Bunia5.63%
🇷🇺 Podolsk, Russia1.16%🇲🇿 Tete5.56%
🇮🇪 Dublin, Ireland1.12%🇦🇴 Cuito5.48%
🇬🇧 London, UK1.12%🇮🇳 Hosur5.38%
🇳🇱 Utrecht, Netherlands1.11%🇧🇯 Abomey-Calavi5.27%
🇸🇪 Göteborg, Sweden1.07%🇳🇬 Nnewi5.18%
🇫🇷 Toulouse, France1.07%🇦🇴 Malanje5.17%
🇸🇪 Malmö, Sweden1.05%🇨🇲 Mbouda5.16%
🇫🇷 Montpellier, France1.04%🇲🇿 Quelimane5.14%
🇫🇷 Bordeaux, France0.99%🇺🇬 Kampala5.14%
🇨🇭 Genève, Switzerland0.99%🇨🇩 Goma5.14%

By 2050, Sub-Saharan Africa will be home to close to 2 billion people and roughly half will be under the age of 25. This represents an enormous labor force and opportunities for innovation and growth. In fact, in navigating the pandemic, Africa is already starting to capitalize on digital advances in both traditional and new sectors.

China has its eye on Africa, as evidenced through their multiple investments in infrastructure projects in the continent. Additionally, NATO countries have recently committed to investing similar amounts in Africa to counter China’s influence.

In spite of the economic potential, increased city sizes could be problematic for some of these countries. They will need to adapt to the issues associated with mass urbanization, like pollution, overcrowding, and high costs of living.

Changing Tides

Population booms can lead to massive economic growth, a larger (and younger) working population, and a growing domestic consumer market.

As the aforementioned cities continue their rapid expansion, and as people continue to flock to growing megacities in Africa and Asia, it could represent the beginning of an important economic shift that is worth keeping an eye on.

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