The economic impact of Rhino makes cities affordable

We hit a major milestone in 2021: As of October, Rhino’s security deposit insurance has saved America’s renters over $500 million by replacing the cash deposit with affordable insurance. Rhino renters save an average of $1,000 when they skip paying the traditional, upfront cash deposit. 

That’s a lot of money saved, and a lot of money renters can spend on other necessities. Renters who use Rhino are given the opportunity to put their dollars back into their local economies, making a direct impact on fueling local business growth, job creation, and more. In short, Rhino’s offerings can play a role in keeping cities affordable during this time of historic economic instability.  

Rhino’s positive impact on local economies nationwide

According to the “The Economic Impacts of Rhino” report, the over $500 million saved and spent by renters has generated over 6,600 U.S. jobs, $1.2 billion in U.S. output, $634.5 million in U.S. GDP,  and $380.8 million in labor income across the whole of the country. For state and local governments, the fiscal impact of Rhino’s security deposit insurance product thus far has been $58.4 million in tax revenues. In unpacking this high-level data, it is important to think through which states and major cities may feel this impact most, and how they benefit from the money saved, based on where Rhino renters live. 

Specific regions and states that benefit most from Rhino

As of now, there are 120,000 renters who use Rhino across America. The states with the most policyholders, and as a result more insurance coverage overall, would generally experience the largest economic impacts. The highlighted regions contain some of the country’s most heavily populated cities, which have high concentrations of Rhino users.   

What sticks out here are Texas, New York, Florida, Ohio, and New Jersey, but Rhino also has a presence in urbanized western states including Arizona, California, and Colorado and the midwest. 

How Rhino makes cities more affordable 

What all these states have in common is major metropolitan areas, including New York City, Dallas, Miami, Austin, Los Angeles, and Columbus. Some of these cities have even adopted Renter’s Choice legislation, which makes security deposit alternatives like Rhino’s security deposit insurance more available to renters. Why? Because they’ve recognized that making renting more affordable and desirable is healthy for a city’s economy. And that urban environments are going to continue changing.

New Jersey and New York are home to notoriously expensive cities including New York City, where the average rent for a one-bedroom apartment is now $2,810. Security deposits are often equivalent to one month’s rent, which means renters from New York save (and may otherwise spend) thousands with Rhino security deposit insurance. Renters in states like Texas, California, and Florida also save, and it will be vital to continue to service renters in major cities nationwide, as rent could increase by at least 40% in 2021. 

Many renters are moving to cities in the west and midwest from the coasts, seeking more affordable living conditions and emboldened by being able to work from anywhere rather than a traditional office environment. As we know, rapid population increases in a city may result in rapid rent increases. This can increase the number of cost-burdened renters and locals, and destabilize a city's entire economy, as more jobs and homes are needed to host the increasing population.

On the other hand, in major cities where Rhino is widely available, decision makers can anticipate the following:

• Increased consumer spending on necessities including healthcare or retail purchases 

• Increased job creation in the healthcare, finance, real estate, and retail sectors, which can better meet increasing demand

• Healthier supply chains, manufacturing, and logistics to provide for city residents 

• And most importantly, renters who are able to pay for rent, groceries, entertainment, or travel. 

All these factors contribute to the ecosystem of a healthy economy for a city, but also create a livable city for all its residents, lifelong and brand new.

Jordan Stein

Jordan Stein is Director of Public Policy at Rhino. He has spent his career at the intersection of government and the private sector, engineering solutions to make living more accessible and affordable for everyone. As a believer in the long-term vitality of cities and their power to give rise to more innovative, equitable communities, Jordan believes that Rhino's solutions are a critical tool to support individuals and families.