A significant surge in secondhand clothing shopping is underway in the United States as consumers actively seek to reduce expenditures and bolster savings, according to fresh data. Shoppers are not only increasing their frequency of purchases from thrift retailers but are also tightening their budgets by spending less on each individual transaction.
Bank of America Report Highlights Spending Shift
"The number of secondhand fashion transactions per household grew nine times faster than secondhand spending in March, yet consumers across all income groups are spending less on each purchase since April 2025," states a Bank of America Institute report published on Tuesday. This analysis is based on comprehensive credit and debit card data, revealing a clear trend toward frugality.
Generational Impact and Environmental Benefits
The secondhand clothing industry has garnered substantial attention in recent years, with social media platforms flooded by videos showcasing thrift store hauls. Generation Z, defined in the report as individuals born after 1995, has transformed their enthusiasm for sustainable fashion into a profitable side hustle. This demographic accounted for 41 percent of secondhand sellers this year, a notable increase from 37 percent in 2024.
Overall, the number of Bank of America customers selling pre-owned clothing rose by 16 percent in March compared to the previous year. Secondhand shopping offers dual advantages: it provides financial relief to Americans grappling with the escalating cost of living while simultaneously allowing them to feel positive about their environmental footprint.
Inflation and Economic Pressures
"As inflation persists, and retailers confront tariff costs, consumers are facing higher price tags on apparel – about five times higher than they were a century ago," the report explains. "Beyond discount apparel, secondhand fashion offers consumers an environmentally friendly and economical alternative to clothing purchases."
Inflation experienced a sharp increase in March, primarily driven by elevated energy prices resulting from the US-Israeli conflict with Iran. The Consumer Price Index climbed 0.9 percent from the previous month, while the cost of consumer goods and services surged 3.3 percent year-over-year, according to official government statistics. The Federal Reserve maintains a target annual inflation rate of 2 percent, highlighting the current economic strain.
Household Financial Strain and Retirement Concerns
Nearly a quarter of all households lived paycheck to paycheck last year, as detailed in a Bank of America Institute report from November 2025. Although the proportion of Americans with no financial flexibility continues to rise, the rate of growth has slowed nearly threefold from 2024 levels.
Adding to the economic anxiety, Americans are expressing diminished confidence in their financial security for retirement. An annual survey conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research, released on Tuesday, indicates that only 64 percent of Americans feel comfortable with their retirement savings. This apprehension stems from heightened living costs and growing uncertainties about the future stability of social safety nets.
