Corporate Housing Overview & Benefits
Corporate housing provides rented furnished housing to individuals, military personnel, and corporations, primarily for longer than 30 days. It generally consists of apartments, condos, and single-family homes for people to use on a temporary basis while traveling for work-related purposes. For an employee being transferred to a new city, staying among local residents is of particular value in determining where in the city he or she will want to live permanently. An additional benefit for a corporate housing client is the ability to leave one’s personal items intact when returning home for weekends, or traveling back and forth.
This type of lodging is more than just a place to stay; it is a much-needed service provided for employees experiencing a training or transition. It in turn helps employers achieve their business goals by cultivating more engaged and focused employees. It is estimated that the annual collective U.S. domestic employee transfer volume for Fortune 500 companies is 244,595. On average, organizations allow their employees 31 days to complete a transfer once accepted, almost necessitating interim housing for a smooth transition. Technology and professional services are the largest generators of corporate housing demand by industry. In addition to regular corporate clients like relocated employees, consultants, and employees in training, clients also include medical professionals, film and entertainment crews, patients receiving specialized care away from home, and those displaced by fire or natural disaster, among others.
Corporate housing has a positive impact on communities in a variety of ways, both direct and indirect. Property-owners benefit by collecting dependable rental income from tenants comprised of vetted professionals and their families. Immediate neighbors of corporate housing benefit from living near well-kept and closely managed residences.
Local economies also benefit from the strong economic impact that this often-unseen industry makes. This impact includes both the rental dollars paid for market-rate (often luxury) units, as well as visitor spending. It is estimated that the annual economic impact in New York City, for example, is $580 million. Additionally, in New York, 5,700 jobs are attributed to the industry, equaling an additional $190 million in salaries and benefits. Nationally, $12.2 billion is spent annually on corporate relocation. Individual corporations spend nearly $18 million yearly to transfer employees. The U.S. inventory of corporate housing is estimated at more than 66,000 units. It is a high-demand form of accommodation whose supply is rising faster than its nearest competitor, upscale extended stay hotels.
