Millennial spending habits: Budget minded, socially conscious
Millennials are entering their peak spending years. Here's what brands need to know about their buying preferences and habits.
Owning things used to signal success, but it seems that’s changing. Today’s consumers—especially Millennials and Gen Z ones—aren’t as concerned about ownership. In some cases, it can even feel like a burden. From jeans and jewelry to baby gear and bookshelves, a growing number of shoppers are opting to rent instead of buy.
It’s not just about saving money. The rental economy taps into something deeper: a desire for flexibility, sustainability, and experiences over accumulation.
As platforms like Nuuly, BabyQuip, and Pickle gain traction, they’re expanding the concept of what it means to participate in commerce—and forcing businesses to rethink what value really looks like.
A generational mindset shift drives the rental economy
For Millennials and Gen Z, the idea of owning things doesn’t carry the same cachet it once did. These generations came of age during economic instability and rising costs of living—and many are now navigating adulthood in tight spaces, on tight budgets, and with a deep awareness of the environmental cost of overconsumption.
Instead, they’re embracing a mindset of access over ownership. Why buy something you’ll only use occasionally when you can rent it when needed—no storage, no resale hassle, no buyer’s remorse? Renting offers a smarter, more flexible solution that allows them to have nice things (be it fashion or furniture) without owning them.
“The youngest in corporate America are exceptionally comfortable with the sharing economy … Their generation’s affinity for renting will translate into how they make business decisions, and companies should be prepared to tailor their offering to that model of consumption,” Venkat Viswanathan, founder and chairman of LatentView Analytics, wrote on Forbes.
Not just that—renting also aligns with GenZ’s desire to reduce waste and keep products in circulation longer. And it supports a more minimalist lifestyle. Those of us who were drawn to the idea of the capsule wardrobe or who Konmari’d our closets only to realize we do want more clothing options can now use what we need, when we need it, then let it go.
The rise of rental retail is deeply intertwined with the broader recommerce movement —the growing market for used or “pre-loved” goods through resale platforms and peer-to-peer marketplaces. Both rentals and resale are pillars of the circular economy, aiming to extend product life and reduce waste.
The appeal is clear: less clutter, less guilt, more freedom. Renting allows consumers to maintain dynamic lifestyles without the drag of long-term commitment. And in a world where mobility, affordability, and sustainability matter more than ever, that’s a powerful proposition.
Behind the boom: Benefits of renting instead of owning
The rental economy is proving to be a business model that’s mutually beneficial to consumers and brands alike. As shoppers look for smarter, more intentional ways to spend, and brands look for ways to grow and diversify, rental commerce platforms are delivering real benefits on both sides of the equation.
Consumer benefits of the rental economy:
- Affordability: Access high-quality items without the full price tag
- Flexibility: Try things out, keep what you like, return what doesn’t work
- Sustainability: Reduce waste and participate in a more circular economy
- Variety without clutter: Rotate styles or gear without just accumulating more stuff
- Convenience: Avoid the hassle of resale, storage, or disposal
Business benefits of the rental economy:
- Recurring revenue: Subscription models provide more predictability than one-time sales
- Extended product life cycles: Maximize ROI by monetizing each item multiple times
- Customer insights: Rentals create rich data on preferences and behavior
- Brand loyalty: Rental subscriptions build deeper engagement over time
- Inventory management: A pathway for excess stock or off-season items to stay in circulation
Rental retail done right: Nuuly strikes fashion gold
Few brands have captured the recent rental boom quite like Nuuly. Launched by Urban Outfitters in 2019, the subscription apparel service hit profitability in 2024 (something even category pioneer Rent the Runway hadn’t yet achieved at the time). And recently, they’ve been all over Instagram and TikTok, thanks to partnerships with micro-influencers who showcase their ever-rotating wardrobes.
Nuuly operates on a monthly subscription model: for $98, subscribers can rent six pieces from the catalog. If they fall in love with an item, they can buy it outright; otherwise, they return it at the end of the rental period.
And whatever they’re doing is clearly working. With 350,000 active subscribers and a 60% year-over-year revenue growth, Nuuly is proof that rental models can be both scalable and profitable.
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Beyond fashion: Bikes, gaming equipment, baby strollers and more
While fashion may be the flashiest frontier of rental commerce, it’s not the only one. Across categories, the rental model has us asking: How much do we really need to own? For example:
- Peer-to-peer platforms like Pickle, Tulerie, and Fat Llama let users rent out everything from their clothes to bikes and gaming gear.
- BabyQuip helps traveling parents borrow strollers and cribs on the go.
- Turo joins the ranks of Zipcar for on-demand car rentals.
And furniture rentals are becoming an increasingly popular option—especially for consumers who move frequently.
The global market for furniture rental is projected to grow 7% annually through 2030, according to Grand View Research.
Subscription furniture services like those offered by Cort, Vesta (which recently acquired popular rental brand, Fernish) and others offer an appealing alternative to the commitment—and cost—of traditional ownership. Even IKEA has been exploring expanding into the rental model, with pilot programs in several different markets.
Overconsumption is out. We’re in the rental era
The rental economy is challenging traditional assumptions about how people engage with products. As more consumers struggle with tighter budgets and concerns about the environmental impact of every purchase, ownership is becoming less and less important to them.
In this new landscape, access is a competitive advantage.
