The Revolution in Renting

I recently read an article in Business Week about emerging markets online for consumer-t0-consumer rentals of everyday household items. Of course, there are people that rent out their automobiles, charging by the hour. But there are also people that rent out power tools, game systems, technology devices, and furniture. Websites such as RelayRides, SprideShare, Zilok, Airbnb, ZipCar, Share Some Sugar, and Snap-Goods are making a killing off of hosting such transactions. The questions is, "Why are so many people choosing to rent what they would have formerly opted to own?"

I think that, as the speed of technological change increases ever more rapidly, consumers are having a difficult time keeping up with experiencing the influx of good in the marketplace. Not everyone has the time or money to take ownership of every hot new item that comes to market. And the real reason I believe people buy things is not to own them but rather to use them--to experience them. It's the life experiences we have with products that make those products meaningful.

Why do people lease cars? True, there are some month-to-month cost savings, but a good car can last 10-15 years. Buying one car and using it for 10-15 years would cost signficantly less than leasing 4-8 cars within the same time frame. So why do people do it? Well, there are minor stylist redesigns in most cars every couple of years and there are always new comfort/convenience and digital technology items being added to the interior. Automobiles improve drastically every couple of years and people simply don't want to miss the experiences provided by those improvements. That is the benefit of leasing a car.

Will consumers in the future forsake the American dream of owning their own homes? Will renting even a place of residence become more attractive in order to experience new environments? Who knows if it will go this far? However, I will venture to say that renting is no longer a notion simply for those who can't afford to own. Renting is strategic. Renting allows you to get the most out of life for your money.