The "rent-first" lifestyle is becoming increasingly popular. When it comes to purchasing items such as cars, clothing, and even caskets, determining whether to buy or rent is crucial.

• Research indicates that younger adults are increasingly opting for the rental lifestyle, not solely due to financial constraints preventing them from owning property.
• Experts offer opinions on whether to purchase or rent various items such as cars, clothing, and homes.

Owning isn't always what it's cracked up to be.

Intuit Credit Karma reports that due to various reasons, such as affordability, an increasing number of Americans are opting for renting items like cars, apartments, clothing, and furniture.

In recent years, the rental industry has broadened its scope to encompass not only traditional tuxedos but also power tools, musical instruments, designer handbags, baby gear, and even funeral caskets.

While 28% of adults regularly rent goods and services, the percentage increases to 47% when considering housing.

The increase in renters is mainly due to high prices, but some people choose to rent for a "rent-first" lifestyle, as indicated by a survey of over 2,000 adults in June.

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More than half of those surveyed find value in renting, with 58% citing flexibility and avoiding overconsumption as reasons.

While renting can be a beneficial choice for many individuals, it's crucial to calculate the costs, advised Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.

"McClanahan, a member of CNBC's Advisor Council, stated that while some individuals excel at renting clothes, owning a few high-quality pieces can be beneficial for special events, as they can last a long time."

The U.S. Bureau of Labor Statistics' consumer price index shows that men's and women's apparel prices have increased by 15% and 13.3%, respectively, since July 2020, due to inflation.

McClanahan stated that leasing a car may not be the most cost-effective option in the long run.

Financing a car with a new or used auto loan typically results in lower long-term costs compared to monthly lease payments, particularly for individuals who keep their vehicles for an extended period.

Routine service is typically included in car lease agreements, but there are mileage limits and charges for wear and tear.

Owning a vehicle outright at the end of a loan term and building equity in the asset will benefit car buyers.

To buy or rent a house in today's market

Renting may be a wise option for many individuals since housing expenses are typically their largest financial burden.

"Before committing to a long-term home, it is recommended to rent first, according to McClanahan. A person should only consider buying a home when they are established in their life, career, and family."

Renting is more advantageous for millennials who delay marriage and family, as they have a broader range of options when searching for a home or relocating for work.

"Dottie Herman, vice chair at Douglas Elliman, stated that this generation views homeownership differently, as there is now a greater emphasis on choice."

Herman stated that owning a house is not as crucial to them as some believe. Many of them express that they prefer to rent and consider the option later.

Some Americans, particularly young adults, are renting out of necessity.

Due to high mortgage rates and a limited supply of homes for sale compared to the number of buyers, home prices have remained high, making it difficult for some people to afford to buy a home. In such cases, renting may be the only viable option.

A report by Bankrate found that close to three-fourths of would-be homeowners said affordability is their greatest obstacle. Meanwhile, Credit Karma found that among younger adults, 50% said homeownership is only achievable for the wealthy.

Despite the recent concentration of wealth creation among homeowners, there is often pressure to buy, even when it may not be financially sound, according to Michael Krowe, director of financial planning at Edelman Financial Engines.

"Avoid purchasing a home solely for the expectation of its value increasing," he advised. "Your home is primarily a dwelling, not an investment."

Renting may be beneficial in this market, Krowe said, as it can help you avoid overspending on a home.