Corporate housing has been a staple of the business world for decades.
It offers temporary lodging for employees and executives who travel for business purposes.
However, the sector has changed significantly over the past several years. As a result, the era of corporate housing in its current form has come to an end.
Continue reading to see six causes that have disrupted the traditional corporate housing model in the United States.
Remote work
The coronavirus increased the need for remote work.
These days, workers can perform their jobs from virtually any location.
The demand for corporate housing among many different companies has recently decreased.
That is why the sector as a whole is moving in the direction of providing more flexible rental options.
Technology advancements
Technology has made it easier for travelers to search for and book places to stay.
Through online platforms, they can book everything from hotels to vacation rentals.
This has increased competition in the market.
As a result, the demand for traditional corporate housing has been driven down.
Increased cost-consciousness
Companies are becoming more cost-conscious in their spending.
They are seeking out more cost-effective solutions for housing their employees.
The shift towards more flexible and cost-effective housing options influenced corporate housing.
Serviced apartments and extended-stay hotels have put pressure on traditional corporate housing providers.
Rise of co-living spaces
Co-living spaces have become increasingly popular with travelers.
They offer shared living arrangements with common spaces and amenities,
These spaces provide a cost-effective and social alternative to traditional corporate housing.
Because of this, they have become a good choice for companies that want to house their workers.
Evolving travel patterns
The COVID-19 pandemic has disrupted the way people travel to work.
Many used the road for trips or stayed closer to home. This shift in travel patterns has significantly impacted the corporate housing industry.
As a result, many companies choose to invest in local housing options instead of traditional corporate housing.
Impact of Airbnb
Airbnb has disrupted the travel and housing industries. It provides travelers with a cost-effective alternative to traditional lodging options.
This has had a significant impact on the corporate housing industry.
Many companies chose Airbnb rentals for their employees instead of traditional corporate housing.
Conclusion
The corporate housing industry has undergone significant changes in recent years.
Changes are due to factors such as:
- remote work
- technology advancements
- increased cost-consciousness
- rise of co-living spaces
- evolving travel patterns, and
- the impact of Airbnb
As a result, there has been a move toward housing options that are more flexible and less expensive.
Demand for traditional corporate housing decreased. Now more than ever, businesses are looking for viable alternatives.
Companies are now seeking alternative solutions. They are looking for co-living spaces and Airbnb rentals for their employees.
But companies like NowLeasing have shown that it can change with the times and still do well.
Now Leasing runs the business with one primary goal in mind. Its goal is for you or your employees to find the best stay you have ever had with a corporate housing company. The Now Leasing team will do everything possible to provide you with the highest possible level of personalized service.
Contact us to ensure that your first stay with Now Leasing is the first of many.
