may be a buyer's market when it comes to real estate, but there are still many things you're often better off renting.
Of course, there's no substitute for ownership if you truly need an item for repeated use, but if you're only going to use something once in a while, why pay full price when you can borrow it for a lot less?
For Americans on a budget, here are 10 examples of when renting might be the more cost-effective choice.
Designer Dresses
Designer gowns and dresses were once out of reach to most of us, affordable only to glitzy celebrities and those with a healthy cushion of disposable income. Now thanks to some hip rental companies, women with more modest means can wear red-carpet-worthy pieces for a fraction of the retail price.
Wear Today Gone Tomorrow rents out dresses and accessories by top designers, many for 90% off the retail price, such as this Kay Unger strapless silk ruched dress for $57 for a seven-day rental (retails for $570). Just keep in mind that the company tacks on a $10 cleaning fee for all dresses.
Rent the Runway also lends out dresses by more than 100 designers, including Vera Wang, Missoni and Diane von Furstenberg, plus accessories such as jewelry and shawls.
Both companies send the rental dress of your choice by mail, and Rent the Runway throws in a second size for free just in case the first one doesn't fit.
Tools
While everyone should probably own a basic toolbox, when it comes to bigger power tools that you may only need for a special project, you can save money by renting.
The Home Depot rents out a variety of tools for the occasional home repair or maintenance project. For instance, I can rent a 20-inch gas chainsaw from my local Home Depot for $63 a day — a good value, considering that buying one from the store can cost from about $200 to $570, according to HomeDepot.com.
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You can also rent a carpet cleaner from most Home Depot locations for $18 for four hours, or $24.97 for the day. According to HomeDepot.com, most carpet cleaners at the store cost $150 or more to purchase.
Handbags
Like dresses, you can rent designer handbags for a considerable amount less than the retail price.
If you're wondering when it makes more sense to borrow a bag than buy one, consider these situations: You have a special event, such as a wedding, that may call for a specific color or style to match your dress, but you don't want to spend a bundle on something you may not wear again (how many "lilac" colored outfits do you normally wear?). Or say you're looking to dress to impress for a job interview, date or charity function. Or you want a new handbag for this season, but don't want to spend too much and get stuck with a bag that may end up in your closet when the season changes.
Bag Borrow or Steal rents out handbags by hot designers like Tory Burch, Prada, Michael Kors and Fendi on a weekly, monthly or seasonal basis. Another service is Handbag Envy, which rents bags for the week or month by designers such as Louis Vuitton, Chanel and Gucci.
Caskets
The only thing spookier than a funeral is the price tag that comes along with it. Purchasing a casket alone can cost an arm and a leg, with the average metal casket priced at $2,295 and the average wooden casket costing $2,865, according to the National Funeral Directors Association.
Believe it or not, though, buying a casket isn't your only option — many funeral homes actually offer casket rentals for the funeral services, which can save you a good amount of money. Rental caskets look like any other to the casual observer, but inside they contain an insert where the body is placed that is removed after the services.
"You normally don't see rentals used with burials — they're typically used for cremation," says funeral director Michael Krill, spokesperson for the NFDA and owner of three funeral homes in northwest Ohio. Krill adds that rentals at his funeral home, which are included in package deals, can save customers about $800-$900.
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Textbooks
As if college tuition fees aren't high enough these days, the cost of books can also make a dent in your savings. According to the College Board, books and other course materials at a four-year public college cost students $1,168 on average for the 2011-2012 academic year.
One way to save money is by borrowing textbooks by services such as CampusBookRentals.com, which rents new and gently used textbooks for a good amount less than the cost of buying the book new and, in many cases, used. For instance, the Longman Anthology of British Literature, Volumes 1A, 1B and 1C rents for $23.13 for the semester — about a third of its list price of $66.67.
Other sites that offer book rentals include Half.com and Chegg.com.
Camping Gear
Ahh, the great outdoors. Many of us daydream about spending more time with Mother Nature, but few of us get around to actually going on regular camping trips. For those who can only go camping once or twice a year, it's probably best to rent your equipment.
The popular sporting goods store REI offers rentals for a variety of camping essentials, including tents, backpacks, sleeping bags, paddling gear and camping stoves. At my local REI, for instance, you can rent a four-person tent for $45 the first day and $10 for every additional day — which equals $55 for a weekend. Meanwhile, most four-person tents on REI.com cost in the $200 and $300 range.
Trucks
When it comes to that occasional home improvement project that requires you to transport a heavy load, it's probably not worth it to buy your own pickup truck — and you certainly don't want to risk damaging the car you already own.
The Home Depot lets you rent a pickup truck for $19 for the first 75 minutes, or $69 for a day, which is available at most of its retail locations. All you'll need is a driver's license, a valid vehicle insurance card and a major credit card.
Parking Spots
One of the most frustrating things about driving is finding a place to park, especially in a busy city or a congested town square. Luckily, there are a variety of services out there that allow you to rent spots, often at a rate significantly lower than commercial car parks or on-street meters.
You can book a spot with the click of a mouse through sites such as ParkatmyHouse and Craigslist — whether you need a spot on a daily, weekly or monthly basis.
Bikes
If you only go biking once in a while, or are an avid cyclist but don't feel like transporting your bike every time you travel, renting could be a good option.
You can rent bikes at low rates from services such as RentaBikeNow.com, which partners with more than 250 bike shops around the country to help people find a bike near their current location. Just head to the site and choose your state from the drop-down menu, and a list of bike shops that offer rentals will appear on a map, allowing you to find the nearest one. Simply click the bike shop you're interested in, choose the date(s) you want to rent, and make your reservation. Your thighs will thank you.
Furniture
If you're decorating a house you plan on living in for years to come, we won't argue with you if you choose to buy your furniture. But if you are hosting a special event at your home that requires some additional seating and tables, are living somewhere temporarily or are selling and want to stage your home with fresh pieces, renting might make the most sense.
Cort provides a host of stylish choices, including sofas, accent chairs, dining tables and rugs, as well as complete sets for your living room, bedroom and dining room. This living room set, for instance, includes a sofa, accent chair, cocktail table, end table and silver tear-drop table lamp for $265 per month.
5 best and 5 worst U.S. housing markets, long term
CHICAGO (MarketWatch) — If you’re in the market for a home these days, you’re likely looking for a place you can live in for a long time, rather than a house you plan to sell a few short years later. But after deep price drops over the past several years, home buyers want to feel comfortable that the value of the house they buy has a good outlook ahead of it.
In your particular market, that often means taking a close look at the employment picture, population growth and housing inventory before making a purchase.
Unlike traditional forecasts that look a year into the future, Local Market Monitor, a firm that analyzes markets for the banking industry, also puts together a three-year forecast. What follows are the highlights of its longer-term forecast: The top five and bottom five housing markets for the three years ahead, taken from a ranking of the largest 100 markets it covers.
Top 5, No. 1. McAllen-Edinburg-Mission, Texas
A strong recovery in jobs is one reason this housing market is looking good right now. Plus, population growth is triple the national average, according to Local Market Monitor. Home prices rose 19% between 2002 and 2007, followed by a 4% drop between 2007 and today, said Ingo Winzer, president of Local Market Monitor. The number of jobs in the area increased 4% over the past 12 months. “McAllen is a border area and the growth in jobs in the past year is mainly in health services and government services [including schools] because of the rapid growth of the Hispanic population. These are lower-paying jobs that mainly affect the rental market and lower housing market,” Winzer said. Michael/Wikimedia
Top 5, No. 2. San Jose-Sunnyvale-Santa Clara, Calif.
Photo: Michael/Wikimedia
Home prices are close to a bottom in this area and there’s already a good recovery underway in the job market, driven by high-tech manufacturing and technology services, according to Local Market Monitor. Income levels are high, and population growth is slightly above average. During the housing boom (between 2002 and 2007), home prices rose a steep 43%; that was followed by a 21% drop. “The San Jose recovery is clearly connected to the high-tech sector, which is very much a boom-and-bust situation. During the recession, 30,000 tech jobs were lost, but 16,000 have been regained since 2009. These are high-paying jobs that affect the housing market,” Winzer said. Rdikeman/Wikimedia
Top 5, No. 3. Akron, Ohio
Photo: Rdikeman/Wikimedia
Home prices were down in Akron over the past year, but a strong recovery in jobs is one reason the market is looking up. Manufacturing, particularly of rubber, is a large component of the economy. This is an area that never saw large home-price increases during the housing boom; without a bubble, prices didn’t have far to fall. At left, Canal Park is the home of the Akron Aeros of the Eastern League.
Top 5, No. 4: Houston-Sugar Land-Baytown, Texas
Photo: NASA
A strong jobs recovery is working in this market’s favor, where the oil drilling and services sector rules. It’s also an area with high population growth — almost triple the national average, according to Local Market Monitor. “The housing boom was all one way, with prices up 21%. The recession was almost non-existent, with jobs down just 1% [over the past year],” Winzer said. At left, the shuttle flight control room at Johnson Space Center. When NASA’s shuttle program ended, jobs were cut at the Johnson Space Center, but it continues to be one of Houston’s most popular family attractions. Ronald C. Yochum Jr.
Top 5, No. 5: Pittsburgh, Pa.
Photo: Ronald C. Yochum Jr.
Home prices are close to a bottom in Pittsburgh. In fact, the housing boom boosted prices in this market by 16%, but they really haven’t fallen. There’s also a good recovery underway in jobs here, with an economy featuring a large health and education sector, according to Local Market Monitor. At left, the skyline from the West End overlook.
Bottom 5, No. 1: Wilmington, Del.
Photo: Nolabob/Wikimedia
Continuing job losses and falling home prices plague this market. The finance sector, including credit-card operations, is big in Wilmington. Home prices got a huge boost during the boom, with a 47% rise in prices, followed by a 16% drop. “To a large extent, the housing boom here was similar to that in many other markets, not caused by any local economic circumstances, but by the wider national picture,” Winzer said. At left, a sign in Wilmington says “Welcome to Wilmington — A Place to be Somebody.” Green Street Properties
Bottom 5, No. 2: Atlanta-Sandy Springs-Marietta, Ga.
Photo: Green Street Properties
Home prices in this area experienced a large drop in the past year, according to Local Market Monitor. It’s also a market that overcorrected in the housing crash: During the boom (between 2002 and 2007), prices rose 15%, followed by a 21% drop, according to the firm’s data. Atlanta has a diversified local economy, and high population growth — almost triple the national average. But income is below average, and the number of jobs fell 8% over the past year. “Atlanta is a more difficult story, with 200,000 jobs lost since 2007, spread fairly evenly over the manufacturing, retail, finance, business services and government sectors, but a very large 55,000 of those jobs were lost in construction. There was no home-price boom in Atlanta, very possibly because far too many new homes were built,” Winzer said. At left, Hedgewood EarthCraft home in Glenwood Park, a green development in Atlanta.
Bottom 5, No. 3: Tucson, Ariz.
Photo: Zereshk/Wikimedia
A large drop in home prices over the past year signals that this is a dangerous market for investors — even though Tucson is having a decent recovery in jobs, according to Local Market Monitor. This is also an area that has been greatly affected by the housing boom and bust: Prices rose 60% during the boom, followed by a 34% drop. And while the University of Arizona normally provides stability in this area, the school is vulnerable to state budget cuts. At left, the entrance garden at Arizona State Museum on the campus of the University of Arizona at Tucson.
Bottom 5, No. 4: Jacksonville, Fla.
Photo: Ebyabe/Wikimedia
Home prices have fallen dramatically in the past year and the housing boom and bust was felt severely in Jacksonville — where prices rose 58% during the boom, followed by a 33% drop. Even though the city has a diversified economy, the recession hit Jacksonville hard, with the number of jobs down about 8% over the year. At left, the John S. Sammis House (also known as the Arlington Bluff House) is a historic home in Jacksonville. It was added to the National Register of Historic Places in 1979.
Bottom 5, No. 5: Sacramento-Arden-Arcade-Roseville, Calif.
Photo: Michael Grindstaff
The Sacramento area also suffered big home-price drops in the past year. During the housing boom, prices rose 35%, but plummeted 38% during the bust. While the government sector often provides stability to the local economy, it’s always vulnerable to state budget cuts. The number of jobs is down 11% over the year. At left, the tower bridge from the east side of the Sacramento River as it flows through Sacramento.
In your particular market, that often means taking a close look at the employment picture, population growth and housing inventory before making a purchase.
Unlike traditional forecasts that look a year into the future, Local Market Monitor, a firm that analyzes markets for the banking industry, also puts together a three-year forecast. What follows are the highlights of its longer-term forecast: The top five and bottom five housing markets for the three years ahead, taken from a ranking of the largest 100 markets it covers.
Top 5, No. 1. McAllen-Edinburg-Mission, Texas
A strong recovery in jobs is one reason this housing market is looking good right now. Plus, population growth is triple the national average, according to Local Market Monitor. Home prices rose 19% between 2002 and 2007, followed by a 4% drop between 2007 and today, said Ingo Winzer, president of Local Market Monitor. The number of jobs in the area increased 4% over the past 12 months. “McAllen is a border area and the growth in jobs in the past year is mainly in health services and government services [including schools] because of the rapid growth of the Hispanic population. These are lower-paying jobs that mainly affect the rental market and lower housing market,” Winzer said. Michael/Wikimedia
Top 5, No. 2. San Jose-Sunnyvale-Santa Clara, Calif.
Photo: Michael/Wikimedia
Home prices are close to a bottom in this area and there’s already a good recovery underway in the job market, driven by high-tech manufacturing and technology services, according to Local Market Monitor. Income levels are high, and population growth is slightly above average. During the housing boom (between 2002 and 2007), home prices rose a steep 43%; that was followed by a 21% drop. “The San Jose recovery is clearly connected to the high-tech sector, which is very much a boom-and-bust situation. During the recession, 30,000 tech jobs were lost, but 16,000 have been regained since 2009. These are high-paying jobs that affect the housing market,” Winzer said. Rdikeman/Wikimedia
Top 5, No. 3. Akron, Ohio
Photo: Rdikeman/Wikimedia
Home prices were down in Akron over the past year, but a strong recovery in jobs is one reason the market is looking up. Manufacturing, particularly of rubber, is a large component of the economy. This is an area that never saw large home-price increases during the housing boom; without a bubble, prices didn’t have far to fall. At left, Canal Park is the home of the Akron Aeros of the Eastern League.
Top 5, No. 4: Houston-Sugar Land-Baytown, Texas
Photo: NASA
A strong jobs recovery is working in this market’s favor, where the oil drilling and services sector rules. It’s also an area with high population growth — almost triple the national average, according to Local Market Monitor. “The housing boom was all one way, with prices up 21%. The recession was almost non-existent, with jobs down just 1% [over the past year],” Winzer said. At left, the shuttle flight control room at Johnson Space Center. When NASA’s shuttle program ended, jobs were cut at the Johnson Space Center, but it continues to be one of Houston’s most popular family attractions. Ronald C. Yochum Jr.
Top 5, No. 5: Pittsburgh, Pa.
Photo: Ronald C. Yochum Jr.
Home prices are close to a bottom in Pittsburgh. In fact, the housing boom boosted prices in this market by 16%, but they really haven’t fallen. There’s also a good recovery underway in jobs here, with an economy featuring a large health and education sector, according to Local Market Monitor. At left, the skyline from the West End overlook.
Bottom 5, No. 1: Wilmington, Del.
Photo: Nolabob/Wikimedia
Continuing job losses and falling home prices plague this market. The finance sector, including credit-card operations, is big in Wilmington. Home prices got a huge boost during the boom, with a 47% rise in prices, followed by a 16% drop. “To a large extent, the housing boom here was similar to that in many other markets, not caused by any local economic circumstances, but by the wider national picture,” Winzer said. At left, a sign in Wilmington says “Welcome to Wilmington — A Place to be Somebody.” Green Street Properties
Bottom 5, No. 2: Atlanta-Sandy Springs-Marietta, Ga.
Photo: Green Street Properties
Home prices in this area experienced a large drop in the past year, according to Local Market Monitor. It’s also a market that overcorrected in the housing crash: During the boom (between 2002 and 2007), prices rose 15%, followed by a 21% drop, according to the firm’s data. Atlanta has a diversified local economy, and high population growth — almost triple the national average. But income is below average, and the number of jobs fell 8% over the past year. “Atlanta is a more difficult story, with 200,000 jobs lost since 2007, spread fairly evenly over the manufacturing, retail, finance, business services and government sectors, but a very large 55,000 of those jobs were lost in construction. There was no home-price boom in Atlanta, very possibly because far too many new homes were built,” Winzer said. At left, Hedgewood EarthCraft home in Glenwood Park, a green development in Atlanta.
Bottom 5, No. 3: Tucson, Ariz.
Photo: Zereshk/Wikimedia
A large drop in home prices over the past year signals that this is a dangerous market for investors — even though Tucson is having a decent recovery in jobs, according to Local Market Monitor. This is also an area that has been greatly affected by the housing boom and bust: Prices rose 60% during the boom, followed by a 34% drop. And while the University of Arizona normally provides stability in this area, the school is vulnerable to state budget cuts. At left, the entrance garden at Arizona State Museum on the campus of the University of Arizona at Tucson.
Bottom 5, No. 4: Jacksonville, Fla.
Photo: Ebyabe/Wikimedia
Home prices have fallen dramatically in the past year and the housing boom and bust was felt severely in Jacksonville — where prices rose 58% during the boom, followed by a 33% drop. Even though the city has a diversified economy, the recession hit Jacksonville hard, with the number of jobs down about 8% over the year. At left, the John S. Sammis House (also known as the Arlington Bluff House) is a historic home in Jacksonville. It was added to the National Register of Historic Places in 1979.
Bottom 5, No. 5: Sacramento-Arden-Arcade-Roseville, Calif.
Photo: Michael Grindstaff
The Sacramento area also suffered big home-price drops in the past year. During the housing boom, prices rose 35%, but plummeted 38% during the bust. While the government sector often provides stability to the local economy, it’s always vulnerable to state budget cuts. The number of jobs is down 11% over the year. At left, the tower bridge from the east side of the Sacramento River as it flows through Sacramento.
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