In the latest episode of The RTO Show Podcast, host Pete Shau examines a demographic shift with significant implications for rent-to-own (RTO): young adults are staying at home longer before establishing households of their own. He points to the average move-out age rising from roughly 23 in the 1990s to about 26, delaying the purchases that often come with setting up a home for the first time.
For RTO businesses, Shau argues that those purchases have not necessarily disappeared. They have been postponed, creating potential future demand for furniture, appliances, electronics, tires, sheds, and other household needs when customers eventually move into homes of their own.
Delayed Household Formation and RTO Opportunity
The significance of delayed household formation goes beyond when someone buys their first sofa or washer and dryer. Shau sees it as another reason for operators to think beyond the current sales period and invest in lasting customer relationships.
Customers entering a new household may face immediate expenses without substantial savings or established credit. That has long been a place where rent-to-own can provide flexibility. Shau encourages operators to treat accounts as relationships rather than individual transactions, building trust before future household needs arise.
The episode also looks at how those relationships matter heading into the fourth quarter. Shau discusses consumers balancing holiday spending with employment uncertainty, growing debt obligations, and increasing competition from buy now, pay later services. Instead of waiting until an account becomes a larger problem, he encourages teams to pay attention to changes in payment behavior, communicate earlier, and understand the circumstances behind a past-due account.
He also emphasizes preparing employees to clearly explain the rent-to-own model to customers who may arrive already considering other financing or payment options. That conversation should help customers understand features such as the ability to return merchandise and the service provided by the RTO business throughout the agreement.
From delayed household formation to fourth-quarter account management, the episode challenges operators to look beyond today’s transaction and consider where customer needs are heading next.
Catch the full episode of The RTO Show Podcast, proudly sponsored by APRO, on YouTube.
