In the past, demand for furnished rental housing was fueled by companies sending their employees out of town for an extended period of time. But now, many residential renters who don’t want to deal with buying furniture are showing an interest too. In fact, the corporate-housing market saw a 13% rise, to $3.62 billion, last year, according to the Highland Group. And at least part of that growth is attributable to residential, rather than corporate, renters.
Mary Ann Passi, chief executive of Corporate Housing Providers, said growth in the industry is likely to come from people with a change in “generational lifestyle.” Many customers don’t want to be bogged down with housing decisions, or spend time organizing a household and paying utility bills, she said.
“We are not only seeing millennials and a younger generation who don’t want to own a home somewhere,” she said. “Empty-nesters are doing the same thing.”
Corporate-housing companies typically rent apartments from landlords and then sublease them after furnishing and wiring them. Although this type of business faces competition from short-term rental sites such as Airbnb, corporate providers often offer lower daily rates and more spacious apartments.
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