In January 2025, apartment rents recorded an annual growth in most U.S. states. Nevertheless, the national average rent declined by about one percent. West Virginia was the state with the largest rental increase, while Colorado measured the largest decline. California, one of the most expensive states to rent an apartment, such as California, saw an increase of about one percent from the previous year. How much should you earn to afford to rent an apartment in different states in the U.S.? Both employment opportunities and the living costs vary widely across the country. In California, which is among the most competitive housing markets in the U.S., the hourly wage needed to afford a two-bedroom apartment rental was roughly 47 U.S. dollars, more than twice higher than in North Carolina, Louisiana, or Michigan in 2024. When it comes to the median household income, on the other hand, California does not even make it in the top ten states. How much should you earn to afford a home in some of U.S. largest metros? In 2022, the annual salary needed to buy a median-priced home in the U.S. was 97,000 U.S. dollars. However, in some of the largest metropolitan areas in the United States, where housing prices are up to two or three times higher, homebuyers would have to earn more than 100,000 U.S. dollars to afford a home. In San Jose, which was the most expensive metro, the annual salary needed for a median-priced home was approximately 374,000 U.S. dollars.

Rents in the United States declined year-on-year for the first time in June 2023, after surging for two years in a row. In November 2021, rents soared by over 18 percent annually — the highest increase on record, and in August 2022, the average rental price reached an all-time high of over 1,440 U.S. dollars. Rental growth has since mellowed, with January 2025 recording a decline of about 0.5 percent from the same period one year ago. Despite the softening of the market, many states still experienced rising rents.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Rent of Primary Residence in U.S. City Average (CUSR0000SEHA) from Jan 1981 to Feb 2025 about primary, rent, urban, consumer, CPI, inflation, price index, indexes, price, and USA.

Rent Inflation in the United States decreased to 4.20 percent in February from 4.40 percent in January of 2025. This dataset includes a chart with historical data for the United States Rent Inflation.

In 2019, Latinx renters typically experienced a monthly rent increase of 200 U.S. dollars, as did Black and Asian renters. Meanwhile, White renters' monthly rent typically increased by 150 U.S. dollars in that year.

Rental rates in the United States increased steadily since 2008. In 2023, the producer price index for gross rent in office buildings reached 132.9 index points. This means that between 2008 when the index value was set to 100 and 2023, gross office rents grew by about 33 percent. Manhattan, San Francisco, and Boston are among the biggest and most expensive markets for office space in the United States.

The average rent for student housing in the U.S. has been increasing, with 2023 seeing the highest rental growth on record. The average rent for student housing increased by 8.2 percent in that year. Rental growth was the weakest in 2020 when the COVID-19 pandemic struck.

Effective rents for retail real estate in the United States are forecast to increase slightly until 2027, with the strongest annual growth projected for 2025 and 2026. Despite rental growth expected to accelerate from the 0.4 percent recorded in 2022, it is forecast to remain below three percent per year. Furthermore, rents are likely to develop at a varying pace in the different U.S. regions.

The rent for office spaces in the United States is expected to continue to increase at a moderate pace until 2027, after rising by less than two percent in 2022. The strongest growth is forecast in 2027, when the average effective rent is projected to rise by 2.4 percent.

Rents for industrial real estate in the U.S. have increased since 2017, with flexible/service space reaching the highest price per square foot in 2024. In just a year, the cost of, flex/service space rose by nearly five U.S. dollars per square foot. Manufacturing facilities, warehouses, and distribution centers had lower rents and experienced milder growth. Los Angeles, Orange County, and Inland Empire, California, are some of the most expensive markets in the country. Office real estate is pricier Industrial real estate is far from being the most expensive commercial property type. For instance, average rental rates in major U.S. metros for office space are much higher than those for industrial space. This is most likely because office units are generally located in urban areas where there is limited space and thus higher demand, whereas industrial units are more suited to the outskirts of such urban areas. Industrial units, such as warehouses or factories, require much more space because they need to house large, heavy equipment or serve as a storage unit for future shipments. Big-box distribution space is gaining in importance Warehouses and distribution may currently command the lowest average rent per square foot among industrial space types, but the growing popularity of the asset class has earned it considerable gains over the past years. In 2021 and 2022, high occupier demand and insufficient supply led to soaring taking rent of big-box buildings. During that time, the vacancy rate of distribution centers fell below six percent. The development of industrial and logistics facilities has accelerated since then, with the new supply coming to market causing the vacancy rate to increase and the pressures on rent to ease.

In 2019, urban and suburban renters typically in the United States experienced a monthly rent increase of 200 U.S. dollars. Meanwhile, rural renters' monthly rent typically increased by 125 U.S. dollars in that year.

United States US: Price to Rent Ratio: sa data was reported at 134.118 2015=100 in 2024. This records an increase from the previous number of 133.710 2015=100 for 2023. United States US: Price to Rent Ratio: sa data is updated yearly, averaging 99.069 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 137.672 2015=100 in 2022 and a record low of 89.669 2015=100 in 1997. United States US: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Graph and download economic data for Consumer Price Index for All Urban Consumers: Rent of Primary Residence in Miami-Fort Lauderdale-West Palm Beach, FL (CBSA) (CUURA320SEHA) from Nov 1977 to Feb 2025 about Miami, primary, rent, urban, FL, consumer, CPI, inflation, price index, indexes, price, and USA.

The average monthly asking rent per square foot of shopping center real estate in the United States increased between 2020 and 2024. This trend was observed in all regions, with the West seeing the highest rents at 29 U.S. dollars per square foot as of the first quarter of 2024. Until 2027, rental growth in the retail sector is forecast to remain positive.

The robust growth of the United States Rent-To-Own Market in the coming years is largely driven by tightened lending standards prevalent among major and subprime lenders. This trend is compelling individuals to seek alternative avenues for accessing essential items such as appliances and computers, fueling the demand for rent-to-own services. The market valued around USD 12.31 Billion in 2023 and it is evident that consumers are increasingly turning to rent-to-own arrangements to fulfill their needs amidst stringent lending conditions. Thus, regulations surrounding rent-to-own in the United States is anticipated help the market grow at a CAGR of around 6.77% from 2024 to 2031.

The accelerating pace of growth in the United States Rent-To-Own Market is underscored by Verified Market Research, with substantial expansion witnessed in recent years and further anticipated in the forecasted period spanning from 2024 to 2031. The significant upward trajectory expected in the market is highlighted by the projected value of approximately USD 19.39 Billion by 2031. As flexible solutions for accessing essential goods without the burden of immediate ownership continue to be sought by consumers, the rent-to-own market is poised to flourish, catering to evolving consumer preferences and economic conditions.

United States Rent-To-Own Market: Definition/Overview

The United States Rent-to-Own Market involves tangible goods being leased with the option for eventual purchase. Regular installment payments, resembling renting, include a portion designated for potential ownership, making this option particularly attractive to individuals lacking upfront capital, conventional financing, or a robust credit history required for outright purchases. Flexibility and accessibility are offered by Rent-to-Own agreements, catering to a segment of the population that may otherwise struggle to acquire needed goods or properties.

Traditionally, Rent-To-Own agreements were primarily focused on real estate transactions, but the modern rent-to-own industry encompasses a broader spectrum, including furniture, appliances, electronics, and even jewelry. The proliferation of e-commerce platforms is anticipated to significantly bolster market revenues, as enticing deals and convenience are offered to consumers by these platforms. Additionally, substantial potential exists within the Hispanic market as loyal rent-to-own customers. Despite a low unemployment rate, dwindling consumer disposable income has led to hesitancy in committing to new property rentals. Several trends, including the surge in international migration, the emergence of the Kiosk model offering low-risk entrepreneurial opportunities, and a declining US homeownership rate, are poised to influence growth. Rent-to-own contracts, also known as “lease purchase,” provide prospective buyers with the opportunity to lease a home with the option to buy it later, contributing to a pathway to homeownership for individuals who may not qualify for traditional mortgages or lack immediate means to purchase the property outright.

According to Cognitive Market Research, the global Rent to Own market size is USD 93514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 37405.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 28054.26 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 21508.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 4675.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1870.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
Real estate properties stand out as the dominant category. The dominance of real estate properties in the RTO market is driven by the desire for homeownership among individuals who may not qualify for traditional mortgages or prefer a more flexible path to ownership.

Market Dynamics of Rent to Own Market

Key Drivers for Rent to Own Market

Affordability and Flexibility of Payment Terms to Increase the Demand Globally

One of the key drivers in the rent-to-own market is the affordability and flexibility it offers in payment terms. Unlike traditional financing options, rent-to-own agreements allow consumers to acquire products without a large upfront payment. This payment flexibility makes it easier for individuals with limited savings or lower incomes to access products they need, such as furniture, appliances, or electronics. Additionally, the ability to spread payments over time without accruing interest can be attractive to consumers looking for budget-friendly options. This driver is particularly relevant in markets where access to credit is limited or where consumers prefer not to take on debt.

Desire for Ownership and Control to Propel Market Growth

Another significant driver in the rent-to-own market is the consumer's desire for ownership and control over the products they use. Rent-to-own agreements typically include an option for the consumer to purchase the product at the end of the rental period. This option provides consumers with a sense of ownership and control over the items, which can be appealing, especially for durable goods like furniture or electronics. Consumers may also value the ability to test a product before committing to purchase, ensuring that it meets their needs and preferences. This driver is particularly relevant in markets where consumers prioritize flexibility and the ability to change or upgrade products easily.

Restraint Factor for the Rent to Own Market

Limited Product Selection and Availability to Limit the Sales

One of the key restraints in the rent-to-own market is the limited product selection and availability compared to traditional retail channels. Rent-to-own companies often offer a narrower range of products, focusing primarily on big-ticket items like furniture, appliances, and electronics. This limited selection may not always align with consumer preferences or specific needs, leading to potential dissatisfaction among potential customers. Moreover, certain niche or specialized products may be unavailable through rent-to-own agreements, further restricting consumer choices. As a result, some consumers may opt for traditional retail options to access a broader range of products, thereby limiting the growth potential of the rent-to-own market.

Impact of Covid-19 on the Rent to Own Market

The COVID-19 pandemic has had a multifaceted impact on the rent-to-own market, significantly altering consumer behavior and market dynamics. On one hand, economic uncertainties and job losses have driven an increased demand for rent-to-own services as consumers seek more flexible payment options for essential items like furniture, appliances, and electronics. This surge in demand has been particularly evident among financially vulnerable populations facing income disruptions or credit constraints. On the other hand, pandemic-induced supply chain disruptions and operatio...

Graph and download economic data for Consumer Price Index for All Urban Consumers: Services Less Rent of Shelter in U.S. City Average (CUUR0000SASL2RS) from Dec 1982 to Feb 2025 about shelter, rent, urban, consumer, services, CPI, inflation, price index, indexes, price, and USA.

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Online Clothing Rental Market Size 2025-2029

The online clothing rental market size is forecast to increase by USD 1.16 billion at a CAGR of 7.1% between 2024 and 2029.

The growing e-commerce fashion industry is the key driver of the online clothing rental market, as consumers increasingly turn to online platforms and e-commerce retail for convenient, affordable access to apparel. 
An upcoming trend is the rising popularity of experiential marketing, where brands create memorable experiences to attract customers and increase engagement. However, a weak inventory management system is a key challenge, as it can lead to stockouts, delays, and poor customer experience, hindering the growth and efficiency of the market.

What will be the Size of the Market During the Forecast Period?

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Women
  Men
  Children


Type

  Formal
  Casual
  Traditional


Business Model

  Subscription based
  Standalone
  Peer to Peer


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan
    South Korea


  South America



  Middle East and Africa

By End-user Insights

The women segment is estimated to witness significant growth during the forecast period. The market is experiencing growth due to the increasing preference for renting occasion wear among women. With a growing awareness of sustainable fashion and reducing clothing waste, the market is projected to expand during the forecast period. Women's segment is expected to dominate the market as they prioritize clothing choices based on various occasions, including formal meetings, parties, weddings, and outdoor activities.

Renting allows them to access high-end formal clothes, luxury footwear, premium jackets, suits, and sports apparel for special events without the need for extensive purchasing. Online clothing rental also addresses the environmental concern of reducing textile waste by promoting the circular economy. This trend is particularly relevant for formal clothes, which are often worn only once or a few times, making rental an economical and eco-friendly alternative.

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The women segment was valued at USD 1.69 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is a significant and mature sector, driven by the well-established e-commerce industry and high Internet penetration in the region. With approximately 92% of the US population using the Internet in 2023, the United States is a major player in the global online market. companies in this market are differentiating themselves through various strategies due to the fragmented competition. Key growth factors include the high demand for premium and luxury clothing, the presence of fashion clusters, and the increasing consumer preference for sustainable clothing. The US dominates the market in North America.

Market Dynamics

In the dynamic world of retail, the shift towards online shopping portals has been a game-changer. The online retail industry, encompassing a vast array of product categories, has significantly impacted the fashion sector. Fashion vlogs and social media have fueled the demand for the latest trends, driving consumers to seek out the newest styles from the comfort of their homes. The film industry, too, has contributed to this trend, with actors and actresses frequently showcasing their red-carpet looks on social media. This has led to a growth in demand for luxury designer dresses, bridal wear, and formal clothing items from both consumers and garment manufacturers. Furthermore, fashion brands have responded to this shift by increasing their online presence, offering a wide range of clothing activities, from casual wear to men's wedding outfits, designer dresses, and international designer labels.

Consumers' fashion sense has evolved, with an emphasis on versatility and style, making online shopping a convenient and accessible solution. Fashion trends are no longer limited to specific regions or seasons, with consumers seeking the latest styles from around the world. Online shopping has made it possible for consumers to explore vario

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Compact Power Equipment Rental Market Size 2024-2028

The compact power equipment rental market size is forecast to increase by USD 2.09 billion at a CAGR of 6.3% between 2023 and 2028.

The market in North America is witnessing significant growth due to the expansion of the construction industry. The integration of advanced technologies such as telematics, fuel cells, batteries, and transformers in compact power equipment like pumps, generators, compressors, bulldozers, and power tools is driving the market growth. These technologies enhance equipment efficiency, reduce operational costs, and improve safety. However, operational challenges associated with compact power equipment rentals, including maintenance, transportation, and fuel management, continue to pose challenges for market growth. Influencers like HVAC, lighting, and HVACR industries are also adopting compact power equipment to meet their energy needs. The market is expected to witness further growth with the increasing demand for eco-friendly and cost-effective power solutions.

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The market encompasses a diverse range of machinery and tools, including engine-driven and electric power tools such as drills, polishers, woodwork routers, and screw drivers. This market plays a vital role in infrastructure development and maintenance by providing lightweight, efficient solutions for construction projects and various industries. The market's size is significant, with continuous growth driven by the increasing demand for specialized equipment that offers improved performance, lower emissions, and enhanced functionality. Rental services for generators, compressors, and other power equipment are increasingly popular due to their cost-effectiveness and convenience. Equipment tracking systems and online platforms, along with mobile applications, facilitate seamless rental processes and efficient inventory management.
The transition towards electric equipment, such as those powered by batteries, electricity, and fuel cells, is gaining momentum due to their environmental benefits and the advancements in electric motors, transformers, and battery technology. Overall, the market is a dynamic and evolving landscape that caters to the ever-changing needs of various industries and construction projects.

How is this Compact Power Equipment Rental Industry segmented and which is the largest segment?

The compact power equipment rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Product

  Electric power tools rental
  Engine-driven power tools rental
  Pneumatic power tools


Type

  Period rental
  Rent to own
  On-demand rental


Geography

  North America

    US


  Europe

    Germany
    France


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Product Insights

The electric power tools rental segment is estimated to witness significant growth during the forecast period.

The market has experienced significant growth due to the increasing focus on environmental sustainability and the reduction of carbon emissions. Electric power tools, a key segment of this market, offer lower emissions and reduced noise levels compared to engine-driven alternatives. This makes them an attractive option for urban and noise-sensitive environments, driving demand, particularly in residential and commercial settings. Electric power tools are also lighter, easier to handle, and require less maintenance, making them suitable for a wide range of users, including DIY enthusiasts, contractors, and professionals. Rental services provide an accessible solution for end-users to utilize eco-friendly equipment without the long-term commitment of ownership.

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The electric power tools rental segment was valued at USD 2.24 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 31% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is driven by the growth In the construction industry, particularly In the US. Despite federal spending cuts, the industry is projected to expand due to low housing loan interest rates and a pipeline of infrastructure projects. In Canada and Mexico, similar positive trends are anticipated. Infrastructure development is a

Residential rents in urban areas in the United States have grown faster than the general basket of products and services of the urban population. In December 2023, the consumer price index (CPI) for rent of primary residences reached almost 411 index points, more than 100 index points more than the CPI for all items. The CPI measures the development of prices, with 1984 chosen as a base year. An index value of 400 indicates that rents have quadrupled since 1984.