Rhove offers an alternative to buying or renting a place of residence that promises to be particularly appealing to young adults. The start-up reimagines renters as stakeholders, recognizing that the average young person spends hundreds of thousands of dollars on rent without any of the benefits of owning property. In partnership with Rhove, a new complex in Columbus, Ohio is giving renters the ability to get a financial stake in the building, offering both financial benefits and flexibility.
The rise of everything from P2P car sharing start-ups to furniture rental services acknowledges that Millennials are embracing co-ownership opportunities. Since buying a house is one of the most expensive purchases that the average person makes, this model offers an appealing hybrid of renting and homeownership—or "rentership."
Image Credit: Norman Ai
Key Themes Behind This Trend
- Stakeholder Renting
- Exploring ownership models for renting that allow tenants to become stakeholders presents innovative opportunities to attract younger generations of renters and provide an experience closer to home ownership.
- Flexible Housing
- Harnessing technology and novel approaches to provide renters with greater flexibility in housing options can disrupt traditional residential real estate models and create new business opportunities.
- Co-ownership Networks
- Developing co-ownership networks that offer access to shared assets and property to younger generations can tap into growing demand for more social and collaborative living arrangements.
Where This Applies
- Real Estate
- The real estate industry has an opportunity to innovate by exploring new hybrid models of renting and ownership for younger generations of renters.
- Fintech
- Fintech companies can disrupt the traditional ownership and financing options by developing new financial models that allow renters to become stakeholders in the properties they occupy.
- Sharing Economy
- Models of co-ownership and stakeholder renting present opportunities to expand the sharing economy into the residential real estate sector, creating new business models and revenue streams.
