The Corporate Housing Providers Association (CHPA) recently released it’s annual Corporate Housing Industry Report for 2013. The survey highlights the corporate housing industry’s key performance indicators for North America, along with market-specific information in more than 60 metropolitan areas .
According to the survey, the corporate housing industry remains strong despite a challenging business climate. With apartment communities having the lowest vacancies since 2002, finding favorable lease terms for corporate housing providers was and continues to be very challenging. This explains the Average Daily Rate increasing approximately $7 in the US and $2 in Canada.
Highlights from the report include:
- US corporate housing inventory is estimated at almost 63,000 rental units, with the Canadian market at approximately 6,500 rental units.
- The average length of stay in 2012 was 88 nights. This has been on an upward trend since 1999. The average of 92 nights in 2009 was the only year higher than 2012. The downturn in the housing market is the most likely culprit for the upward trend. Longer days on market for the origination home prevent a transferring family from purchasing in the new area which then brings about the need for extended temporary living benefits.
- In the US, relocation continues to be the main reason for client stays, while in Canada, project/training is the major reason clients stay in units, with relocation a close second.
- One-bed-room units accounting for between 48% and 51% of corporate housing inventory. This explains why 3 bedroom units are such a rarity.
- Most corporate housing companies have a formal minimum notice to vacate term of 30 days but partial months are not uncommon.
For a complete copy of the report contact the CHPA by clicking here