Although economists have sometimes been disappointed by the rate of economic recovery, slow and steady financial growth can be a sign of long term future stability. While Wall Street has recovered completely from the housing bubble, we have to look for other indicators to see how regular Americans have fared so far this year. One encouraging sign: the growth in demand for corporate housing.
What is corporate housing?
Corporate housing (also known as furnished corporate housing) is an apartment, condo, or other furnished rentals leased for 30 days or more, usually to temporary workers, interns, or relocating employees in need of a furnished living space. Strong demand for corporate housing can indicate how many Americans have escaped so-called “job lock” for new opportunities.
Why is there high demand for furnished housing in particular? Why don’t people just stay in hotels?
Extended stay hotels (even at discounted rates) usually cost about 20% more than furnished corporate housing rented by the month. And since the average stay in a corporate apartment or condo is around 90 days, not everyone wants to live out of a hotel and suitcase for months on end.
Right now, it’s estimated that there are more than 56,000 short term corporate housing units in the U.S. As the economy continues to recover from the Great Recession, experts say the demand for corporate housing is increasing in key growth areas like New York, New Jersey, and around Silicon Valley.
How can I find corporate housing?
If you’re an employee or business person looking for a place to stay, you can check Craigslist and other apartment listing sites. But first be sure to check with your employer; they might already have accommodations in place for you, or at the very least can provide a recommendation for your stay in town.
For employers looking for dedicated furnished housing for present and future workers, it might be cost effective to arrange a permanent deal with a corporate housing company in your city. Compare prices and reviews to find out where your people will feel most at home.
One third of all people staying in furnished corporate housing rentals are there because of a job relocation, and more firms are including relocation costs as part of their benefits package. Arranging a good price on units for your new hires could help attract better candidates in the future.
