For five consecutive years, relocation was the largest reason for using corporate housing in the U.S. as reported by the Corporate Housing Providers Association (CHPA).
Key 2016 stats:
- U.S. corporate housing revenues were $2.93 billion in 2015, a 7% increase over 2014.
- Per survey respondents, U.S. corporate housing inventory is estimated at over 63,000 rental units while Canada adds approximately another 7,000 rental units.
- The average stay in the U.S. was 84 nights in 2015.
- Occupancy in the U.S. has remained stable at 88.1%.
- Relocation continues to be the main reason for client stays in the U.S. while project and training accounts for the majority of stays in Canada.
- Overall, U.S. corporate housing average daily rate (ADR) was $143 in 2015, a 4.1% increase. ADR in Canada is estimated at $128.
Corporate housing spend, for employers, is among the most significant costs associated with employee relocation. As rents across the U.S. continue to rise, it will drive the cost of corporate housing even higher as the base rent is the number one factor in establishing the corporate housing daily rate.
However, the number one factor for providing temporary housing is to bridge the gap between buying, or renting, a home in the new location. The sooner transferees have their new address established, the cost associated with temporary housing is reduced.
No one should feel rushed to make a housing decision and providing temporary housing is an important component of a relocation package for those who need it. Although, employers and relocation management companies are unaware that most transferees prefer to avoid temporary housing and move directly into their new home.
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