Americans turn to 'rent now, pay later' as living costs soar beyond reach
Rising living costs are pushing more Americans to use 'rent now, pay later' services just to keep up. Over half of US renter households already spend at least 30% of their income on housing, with the national median rent now nearly $200 higher than before the pandemic. As bills for healthcare, groceries, and utilities also stretch budgets, some are turning to instalment plans to cover rent—but these come with their own risks.
The idea behind rent now, pay later is simple: tenants split their rent into smaller payments, while the service pays the landlord in full at the start of the month. Companies like Flex, Jetty, and Till have partnered with major rental providers, covering around 2.5 million US apartments by the end of 2023. For tenants like Chauncy Williams, a school career counsellor, these services have been a lifeline—he used one after his wife lost her job and their rent became unaffordable.
The trend has caught the attention of big players. Affirm, a well-known 'buy now, pay later' company, recently launched a pilot in the rental market, joining startups like Livbl and Qira. Supporters argue the plans offer flexibility and help with budgeting. But there are downsides: missed payments can lead to account freezes until the debt is cleared, and extra fees may pile up. The broader picture remains grim. A Washington Post-ABC News-Ipsos poll found 56% of Americans struggle with healthcare costs, while 45% say the same about groceries and utilities. With rents still climbing, these instalment plans provide short-term relief—but they don't solve the deeper affordability crisis.
Rent now, pay later services are growing as more households face financial strain. Around 2.5 million apartments now accept these payment plans, giving tenants a way to manage soaring rents. Yet with fees and strict repayment rules, they remain a temporary fix rather than a long-term solution.
