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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Demographics

3D Map: The World’s Largest Population Density Centers

What does population density look like on a global scale? These detailed 3D renders illustrate our biggest urban areas and highlight population trends.

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global population density map

A 3D Look at the Largest Population Density Centers

It can be difficult to comprehend the true sizes of megacities, or the global spread of 8 billion people, but this series of population density maps makes the picture abundantly clear.

Created using the EU’s population density data and mapping tool Aerialod by Alasdair Rae, the 3D-rendered maps highlight demographic trends and geographic constraints.

Though they appear topographical and even resemble urban areas, the maps visualize population density in squares. The height of each bar represents the number of people living in that specific square, with the global map displaying 2km x 2km squares and subsequent maps displaying 1km x 1km squares.

Each region and country tells its own demographic story, but the largest population clusters are especially illuminating.

China vs U.S. — Clusters vs Sprawl

population density spikes around China

Click here to view the high resolution version.

Zooming into the most populated country in the world, China and its surrounding neighbors demonstrate massive clusters of urbanization.

Most people are familiar with the large density centers around Hong Kong, Guangzhou, and Shanghai, but the concentration in central China is surprising. The cities of Chengdu and Chonqing, in the Sichuan Basin, are part of a massive population center.

Interestingly, more than 93% of China’s population lives in the Eastern half of the country. It’s a similar story in neighboring South Korea and Taiwan, where the population is clustered along the west coasts.

population density spikes in the united states

Click here to view the high resolution version.

The U.S. also has large population clusters along the coasts, but far more sprawl compared to its Asian counterparts. Though the Boston-Washington corridor is home to over 50 million residents, major centers spread out the population across the South and the Midwest.

Clearly visible are clusters in Florida (and not exclusively focused around Miami like some might believe), Illinois, Georgia, and Texas. The population is sparse in the West as expected, but California’s Los Angeles and Bay Area metros make up for the discrepancy and are just behind New York City’s density spikes in height.

India & Southeast Asia — Massive Density in Tight Areas

population density spikes around India

Click here to view the high resolution version.

At 1.38 billion people, India’s population is just behind China’s in terms of size. However, this sizable population fits into an area just one-third of China’s total land area, with the above map demonstrating what the same amount of people looks like in a smaller region.

On one hand, you still have clear clusters, such as in Mumbai, New Delhi, Kolkata, and Bangladesh’s Dhaka. On the other, there is a finite amount of room for a massive amount of people, so those density “spikes” are more like density “peaks” with the entire country covered in high density bars.

However, we can still see geographic trends. India’s population is more densely focused in the North before fading into the Himalayas. Bangladesh is equally if not more densely populated, with the exception of the protected Sundarbans mangrove forest along the coast. And Pakistan’s population seen in the distance is clustered along the Indus River.

population density spikes in Southeast Asia

Click here to view the high resolution version.

Geographic constraints have always been the biggest deciding factor when it comes to population density, and nowhere is this more apparent than Southeast Asia.

Take Indonesia, the fourth largest country by population. Despite spanning across many islands, more than half of the country’s 269 million inhabitants are clustered on the single island of Java. The metros of Jakarta and Surabaya have experienced massive growth, but spreading that growth across oceans to entirely new islands (covered by rainforests) is a tall order.

When the distance is smaller, that cross-water growth is more likely to occur. Nearby in the Philippines, more than 100 million people have densely populated a series of islands no bigger than the state of Arizona.

Indeed, despite being one of the most populated areas in the world, each country in Southeast Asia has had its own growing problems. Some are limited by space (Singapore, Philippines), while others are limited by forests (Thailand, Vietnam).

A World of Different Density Pictures

Though the above maps cover the five most populated countries on Earth, accounting for nearly half of the world’s population, they only show a small part of the global picture.

As the full global density map at the top of the page highlights, the population patterns can accurately illustrate some geographic patterns and constraints, while others need further exploration.

For example, the map clearly gives an outline of Africa and the sparse area that makes up the Sahara Desert. At the same time, landmasses like Australia and New Zealand are almost invisible save for a few clusters along the coast.

To get a closer and more intricate picture of each country’s density map, head to Alasdair Rae’s long thread of rendered maps and start scrolling up to find yours!

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Misc

Countries with the Highest (and Lowest) Proportion of Immigrants

Here, we highlight countries that are magnets for immigration, such as UAE and Qatar, as well as nations with very few foreign born residents.

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countries with the highest proportion of immigrants

Countries with the Highest Proportion of Immigrants

For people living in cosmopolitan urban centers, it’s easy to overestimate the prevalence of immigrants around the world.

The median proportion of foreign-born people in all countries is just over 5%. In countries with a population greater than one million, only four are majority foreign-born, and only eight surpass the one-third mark.

Here are the top 20 countries with the highest proportion of immigrants in their populations:

CountryImmigrants as a percentage of population
🇦🇪 United Arab Emirates88%
🇶🇦 Qatar77%
🇰🇼 Kuwait73%
🇧🇭 Bahrain55%
🇴🇲 Oman46%
🇸🇬 Singapore43%
🇸🇦 Saudi Arabia39%
🇯🇴 Jordan34%
🇦🇺 Australia30%
🇨🇭 Switzerland29%
🇳🇿 New Zealand29%
🇱🇧 Lebanon25%
🇮🇱 Israel23%
🇨🇦 Canada21%
🇰🇿 Kazakhstan20%
🇸🇪 Sweden20%
🇦🇹 Austria19%
🇩🇪 Germany19%
🇬🇦 Gabon19%
🇮🇪 Ireland18%

Source: UN via World Population Review. Note: Only countries with a population of greater than one million are included.

The United Arab Emirates comes out on top for the highest proportion of immigrants in its population. Impressively, the small Middle Eastern nation ranks sixth in the world for total immigrant population (8.7 million people).

Other countries on the Arabian Peninsula also rank at the top of this list. In Qatar, current host of the 2022 World Cup, 3-in-4 people are immigrants. The high proportion of foreign workers in the country also results in an extreme demographic skew—approximately 75% of the population of Qatar is male.

The one extreme outlier in the region is war-torn Yemen, where only 1.3% of the population are immigrants.

Outside the Middle East, Singapore (43%) takes top spot, followed by Australia (30%).

Spotlight on U.S. Immigration

Although the United States is outside the top 20, it still has by far the most immigrants of any other country (50 million vs. 16 million in second-place Germany).

About 15% of people in the U.S. are immigrants—numbers which are comparable to the historic high in the late 19th century. The proportion of foreign-born people in the country has been on the rise since the 1970s, and is projected to continue rising in coming decades. Around 2030, immigration is expected to surpass natural increases as a driver of population growth.

Countries with the Lowest Proportion of Immigrants

A few countries are magnets for immigration, while a great many more receive very little immigration. This can simply be due to lack of demand, or because of more extreme circumstances such as war or a failing economy. In other cases, immigration policies may limit the number of people who can migrate to a country.

Here are the top 20 countries with the lowest proportion of immigrants in their populations:

CountryImmigrants as a percentage of population
🇨🇺 Cuba0.03%
🇨🇳 China0.07%
🇻🇳 Vietnam0.08%
🇮🇩 Indonesia0.13%
🇲🇬 Madagascar0.13%
🇲🇲 Myanmar0.14%
🇭🇹 Haiti0.17%
🇰🇵 North Korea0.19%
🇱🇰 Sri Lanka0.19%
🇵🇭 Philippines0.21%
🇲🇦 Morocco0.28%
🇮🇳 India0.35%
🇵🇬 Papua New Guinea0.35%
🇦🇫 Afghanistan0.37%
🇸🇴 Somalia0.37%
🇪🇷 Eritrea0.39%
🇭🇳 Honduras0.40%
🇬🇹 Guatemala0.47%
🇰🇭 Cambodia0.47%
🇹🇳 Tunisia0.51%

Cuba has the lowest level of foreign-born people in its population. The Caribbean nation makes it very difficult for foreign nationals obtain permanent residency.

China comes in second last. In absolute terms, the million or so immigrants living in China may sound like a lot, but pales in comparison to the overall population of 1.4 billion.

Interestingly, Japan–which is the poster child for low immigration–isn’t on the list above. The country’s foreign-born population sits at just over 2%.

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