
The US Rent to Own Market: Insights and Forecast with Potential Impact of COVID-19 (2022-2027)
Description
The US Rent to Own Market: Insights and Forecast with Potential Impact of COVID-19 (2022-2027)
Market Insight:
A rent-to-own (sometimes known as "lease purchase") agreement allows buyers the chance to lease a house with the opportunity to purchase it later. On a monthly basis, the tenant/buyer pays the landlord/seller a sum equivalent to the rental amount. A part of the monthly payment is then put to the purchase price of the home. The tenant/buyer has the sole right to purchase the residence during or at the conclusion of the lease period on the conditions agreed upon by both parties.
The rent-to-own market is expected to exhibit a favourable outlook in the coming years as major and subprime lenders tighten lending standards. Furthermore, demand for critical items (appliances and computers) is expanding and would likely increase further in the near future. The US rent to own market is expected to reach US$11.95 billion in 2023, growing at a CAGR of 6.77% during the forecast period.
Segment Covered:
- By Distribution Channel: In terms of distribution channel, the report provides the bifurcation of the US rent to own market into two segments: Brick & Mortar and E-commerce. E-commerce channel held the largest market share and is expected to grow at a significant CAGR 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.
Growth Drivers
- Significant Population of International Migrants
- Growing Millennial Population
- Spike in Urbanization
- Rising Virtual Rent-to-Own Market
- Dependency on Vendors, Suppliers and Products
- Lack of Customer Security
- Hike in Internet Penetration
- Rollout of Smartphone as New Category
- Rapid Pace in Technological Advancements
- Driver: Significant Population of International Migrants
- Challenge: Dependency on Vendors, Suppliers and Products
- Trend: Rapid Pace in Technological Advancements
The COVID-19 Analysis:
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.
Analysis of Key Players:
The US rent to own market is fragmented with the presence of a large number of players majorly dominating the country. Key players of the US rent to own market are:
- The Aaron's Company, Inc.,
- Rent-A-Center Inc.,
- goeasy Ltd.,
- Co-Ownership Organization,
- EZ Furniture Sales & Leasing,
- FlexShopper Inc.,
- Buddy's Home Furnishings Company,
- Snap Finance Company,
- Home Partners of America Company (HPOA),
- Dream America Organization,
- Action Rent to Own,
- Divvy Homes,
- Zerodown,
- Verbhouse,
Table of Contents
70 Pages
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