According to Minna Sharrak of Leading Apartments, 2011 was an interesting year for the temporary housing industry in Michigan. With corporate relocations on the rise and the Michigan Film Incentive bringing productions from out of state, temporary housing was very much in demand.
The increased demand coupled with a surge in foreclosures brought a severe shortage of quality temporary housing in 2011. There has not been much in the way of new apartment construction in the past 10 years due to the fluctuations in the economy. Apartment complexes that were newer were always running at 99% occupancy. The low vacancy rate translated into less well maintained complexes being presented to incoming transferees as their only temporary housing option.
Another issue the temporary housing industry dealt with was unfavorable lease terms and increasing rental rates. When a complex was running with higher inventory, they were less inclined to give short term leases and almost always rents went up on the last few apartments that were available. This in turn drove up furnished rental rates that were passed on to third party customers.
The coming year should be another good year for the temporary housing industry however supply shortages will continue to present challenges. A shortage of quality temporary housing in top requested cities such as Ann Arbor, Birmingham, Troy, Royal Oak and Novi/Northville/Canton will mean that furnished housing suppliers will need to be proactive
Temporary housing companies must develop solid relationships with apartment properties/communities in order to ensure a sufficient amount of inventory to pass back to their third party clients. If you can align yourself with one or more quality temporary housing providers, you should be able to find accommodations that will suit your client’s needs.
Let me know what challenges you faced trying to secure quality temporary housing for your clients.