As more and more people travel for work assignments, the short-term housing industry has responded accordingly. The U.S. corporate housing Average Daily Rate (ADR) was $143 in 2015, with a majority of Market Service Area’s reporting an increase in ADRs, according to the Corporate Housing Providers Association.
So what does this mean?
That the short-term housing industry is incredibly strong—and growing rapidly. “As rates and demand rise, it becomes increasingly important to share these trends with businesses and their travelers to help them optimize for today’s market climate, and to further inform and progress our industry as a whole,” said Elia Wallen, president of Travelers Haven.
To help evaluate the current state of the short-term industry and boost your short-term housing program, consider the following trends around ADRs, demand, average length of stay, and extensions.
Demand has increased, while capacity has tightened, causing ADRs to continue to rise on average across the industry. Travelers Haven, however, has seen a slight softening in the market with a reduction in their ADRs by 50 basis points year-over-year.
The top cities with the largest ADR increases year-over-year include: Seattle, Honolulu, Los Angeles, and San Diego.
While ADRs have risen on average across the country, Travelers Haven has seen a reduction by 50 basis points.
As mentioned above, there has been a steep increase in demand for short-term housing across North America. New tenant move-ins rose sharply by 26 percent from 2015 to 2016, while demand grew at a staggering 67 percent between 2014 to 2016.
These metrics show an increase in the mobile workforce populous.
Length of Stay & Extensions
The average length of stay increased by seven percent from 2014 to 2016. Lease extensions also increased by 42 percent from 2015 to 2016, and 75 percent from 2014 to 2016.
Both trends signal a shift in the U.S. mobile workforce taking longer assignments.
Short-term housing trends are based on the statistical analysis of proprietary Travelers Haven data over 2014, 2015, and 2016. As indicated above, these trends are based on information gathered from various internal sources. The trends report represents a sample of U.S. mobile workers and is not a holistic representation or warranty as to the accuracy of the trends made herein.