2021 Corporate Housing
GMS is here to make sure you keep up with all the latest trends in the corporate housing industry for 2021. As corporate housing needs are on the rise, is the inventory there to keep up? Here is a breakdown of some statistics around corporate housing trends for 2021:
Estimated 30% overall reduction in the number of available corporate apartments due to:
- Operators ending leases with apartment communities as demand dropped
- Some operators broke their leases and handed keys back
- Other operators could not pay rent, resulting in a default on their leases
- May lead to strained relations between the higher-end apartment building owners where corporate housing providers place most rentals
- May stop some operators from acquiring additional inventory as demand increases
Most serviced apartment buildings remain in business. Being property-based and not leased has helped the inventory of corporate apartments to remain stable.
Major corporate housing companies exited the business in 2020, and other venture capital-backed brands also exited, further tightening supply. Several smaller and regional corporate housing operators are on the fence and may exit the business.
The outlook of trends in corporate housing for 2021 is for a rebound in business. While Q1 remained depressed, the volume should rise substantially in North America and globally during Q2 and Q3 as various markets continue to work towards reopening.
What Does This Mean Moving Forward?
With extremely tight and competitive real estate markets throughout the country, many companies are looking at corporate housing as an interim solution. Many states’ housing markets are projected to see continuous competition in the home purchase market through 2021. This is where corporate housing will play a big role in allowing companies to relocate employees to short-term rentals until the markets start to level out and transferees have a shot at purchasing a full-time home in their new destination.
It is also worth noting that experts expect to see a 5-8% price rise in corporate housing costs from 2021-2025. Most temporary housing companies utilize a per-day pricing model or a bundled pricing model based on the number of employees.
Contact GMS Today
GMS’s certified team is always up to date on all the latest trends in corporate housing. Reach out today and we’ll ensure all of your relocation needs are met. We can help you relocate employees from anywhere in the world. Reach out to us online to get in touch.