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US Rent-to-Own Market Report 2022: Surging Internet Penetration Boosting Awareness and Driving Growth

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Dublin, CA – Dec. 6, 2022 (PRNewswire) The “The US Rent-to-Own Market: Analysis By Distribution Channel (Brick & Mortar and E-commerce), Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2027” report has been added to  ResearchAndMarkets.com’s offering.

Rent-to-own (also known as “lease purchase”) is a contract that allows prospective buyers to lease a home with the option to purchase it later. The tenant/buyer pays the landlord/seller an amount equal to the rental amount on a monthly basis. A portion of the monthly payment is then applied to the home’s purchase price. During or at the end of the lease period, the tenant/buyer has the exclusive right to purchase the home on the terms agreed upon by both parties. In 2021, the US rent-to-own market was valued at US$10.48 billion, and is probable to reach US$15.53 billion by 2027.

The rent-to-own industry is anticipated to showcase a positive outlook during the forecasted years as primary and subprime lenders would tighten credit measures. Furthermore, demand for essential products (appliances and computers) is increasing and would further intensify in the approaching times. The US rent-to-own market is projected to grow at a CAGR of 6.77%, during the forecast period of 2022-2027.

Market Segmentation Analysis:

By Distribution Channel:

The report splits the US rent-to-own market into two distribution channel: Brick & Mortar and E-commerce. E-commerce channel held a share of 41% of the market share in 2021 and is expected to grow at a CAGR of 10.08%, in the forecasted period. Stay at home and social distancing orders have been imposed all across the US due to the outbreak of COVID-19. This in turn has led to more and more people preferring e-commerce channels for purchasing various things on lease.

The US rent-to-own Market Dynamics:

Growth Drivers: The rising urban population resulted in a positive influence on rent-to-own market. Consumers find it more stress-free and convenient way to use rent-to-own services instead of buying the products as there is the possibility of shifting to different locations for different reasons. Further, the market is expected to increase due to significant population of international migrants, surging GDP growth, rising disposable income, growing millennial population, rising virtual rent-to-own market, etc.

Challenges: Rent-to-own facilities is tailed by various issues such as lack of customer security. For example, a lease-option is accompanied by similar risks for tenants/buyers as a traditional mortgage, excluding the benefit of potential recovery. The other challenge that the US rent-to-own market face is dependency on vendors, suppliers and products, low profit margin, etc.

Trends: A major trend gaining pace in the US rent-to-own market is hike in internet penetration. With increasing use of internet in all phases of life, people have been able to reach and compare many products and knowledge on various industries provided on internet. This opportunity is seized by many rent-to-own companies and they are now providing all the information regarding the new launched services and existing services on the internet. More trends in the market are believed to augment the growth of the US rent-to-own market during the forecasted period include rollout of smartphone as new category, rapid pace in technological advancements, etc.

Impact Analysis of COVID-19 and Way Forward:

The epidemic of Coronavirus illness (COVID-19) had a significant impact on the US rent-to-own market, as governments around the world implemented lockdowns. However, the market’s total impact was favorable in 2020. The enterprises saw a loss in revenue for the first quarter of the year, however the industry recovered due to increased demand for house ownership, higher rental prices, and other factors. The rent-to-own industry in the US is likely to grow further in the future, owing to the rapid speed of technology improvements, more e-commerce in home purchases, and so on.

Key Topics Covered:

1. Executive Summary

2. Introduction

3. The US Market Analysis

4. Impact of COVID-19

5. Market Dynamics

6. Competitive Landscape

7. Company Profiles

Companies Mentioned

  • Rent-A-Center Inc.
  • goeasy Ltd.
  • The Aaron’s Company, Inc.
  • Co-Ownership Organization
  • FlexShopper Inc.
  • EZ Furniture Sales & Leasing
  • Buddy’s Home Furnishings Company
  • Snap Finance Company
  • Home Partners of America Company (HPOA)
  • Dream America Organization
  • Zerodown
  • Verbhouse
  • Action rent-to-own
  • Divvy Homes

For more information about this report visit https://www.researchandmarkets.com/r/gamqs2

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Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com

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SOURCE Research and Markets

Coldwell Banker Releases “The Report”, A Comprehensive Profile of the 2021 Luxury Real Estate Market

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“The Report” identifies top 10 power and emerging luxury markets as luxury home buying trends and lifestyle preferences shift

Madison, N.J. – Feb. 24, 2021 (PRNewswire) –Today, Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY) brand, and the Coldwell Banker Global Luxury® program released “The Report: 2021 Global Luxury Market Insights,” an in-depth analysis of emerging luxury markets and buyers. Included in the report are noteworthy trends shaped by an extraordinary year full of uncertainty and change, as well as top performing luxury markets of 2020 and those to watch in 2021.

This year, “The Report” combined sales data analysis with a record number of in-depth interviews from Coldwell Banker® Global Luxury® Property Specialists providing on-the-ground perspectives from diverse real estate markets. In addition to these interviews, Coldwell Banker Global Luxury also selected 40 of these Property Specialists for a first-of-its-kind survey to better understand the shifts in affluent property-buying trends and what lies ahead for luxury real estate.

New definitions of luxury — like the intangibles of family, health, space and security — spurred new affluent living trends in 2020 as buyers realigned priorities by seeking out properties with access to the outdoors, privacy and more space. Demand for mega mansions, estates and other luxury compounds surged, with 55% of Luxury Property Specialists surveyed noted that more square footage was the number one amenity that flipped in demand from 2019 to 2020. A new affluent demographic, known as Trailblazers, drove shifting buying trends as they migrated away from cities in favor of small, hidden gem towns, the suburbs, and second home destinations.

As wealthy homebuyers embraced new lifestyles, new trends prevailed. The top preferences expected to have staying power over the next 5 years include: the home office (27.5%), demand for a second home (22.5%), and the desire for single-family detached homes (22.5%).

In 2020, there was a dramatic change in many luxury markets that had been buyer’s or balanced markets in 2019. Escalating demand now pushed these markets into seller market territory, which is only anticipated to continue into 2021. To determine the Top 10 “Power Markets” of 2020, the Coldwell Banker® brand collaborated with The Institute for Luxury Home Marketing to analyze the markets with at least an average of 50 sales per month and the highest sales ratio percentages. On reviewing the Top 10, four new hotspots came into focus for a variety of reasons: 

  • East Bay, California: Both single family and attached-home sales soared due to high demand as buyers’ concerns shifted from reducing daily commutes to gaining space. Inventory could not keep up, as most listings prompted multiple offers and drove up prices. This resulted in the sales ratio rising over 100% after July.
  • Colorado Springs, Colorado: Growth in this city expanded faster than predicted fueled by millennial and out-of-state buyers. The sales ratio (38.84%) remained consistent with luxury single family homes in high demand.
  • Fairfax County, Virginia: Luxury townhome sales saw unprecedented levels; there was only a month of inventory for $645,000+ townhomes in December, and even less for those in the $1M+ category, with a 51.93% sales ratio for attached homes.
  • King County, Washington: Pent-up buyer demand, driven by historically low interest rates, desire for more space, and lower-than-expected inventory levels, contributed to record low days on market and a 37.7% sales ratio at asking price.

“The Report” also identified four key categories of emerging markets across the luxury home sector offering a range of lifestyle amenities, cultural experiences, and educational opportunities. The unexpected rise of these locations underscores the unforeseen dynamics at play during 2020 as the pandemic impacted many buyers’ decisions. 

Secondary Markets on the Rise

  • Phoenix, Arizona
  • Denver, Colorado
  • Dallas, Texas

Markets Exceeding Expectations

  • Salt Lake City, Utah
  • Sacramento, California
  • St. Louis, Missouri

New Discoveries

  • Burlington, Vermont
  • Reno, Nevada
  • Coeur D’Alene, Idaho

Ready for Discovery

  • San Antonio, Texas
  • Knoxville, Tennessee
  • Hamilton County, Indiana

About The Report
Designed to be a definitive guide for international high-end property buying and selling, The Report adds insider intelligence to strong industry research by combining anecdotal insights from local market professionals affiliated with the Coldwell Banker® brand, as well as The Institute for Luxury Home Marketing, Wealth-X, and other leading luxury insiders.

SOURCE Coldwell Banker Global Luxury