From tenant variances, the Brexit implications, and self-booking sites, the corporate housing industry is in for some changes. We predict some of these temporary housing trends for 2018 in the below Corporate Housing Industry Outlook:
Who Will be Staying in Temporary Housing in 2018?
While it’s true that corporate housing is geared towards the white-collar workforce, happenings and trends in 2018 might just change that outlook. First, we outline some populations that we expect will be needing corporate housing accommodations more this year than in the past.
Travel Nurses
As the baby boomer generation continues to age and recent trends show a global nurse shortage, an increased need for travel nurses will be apparent. Travel nurses on assignment need living accommodations, so expect to see more nurses signing leases and taking up residency in temporary housing apartments!
Millennials
According to Human Resources professional Annette Dixon, half of the Australian workforce will be millennials by the year 2020. This number is expected to hold true for populations in other countries across the world as well, including the United States. But what does this mean for the corporate housing industry? It means that amenities, locations, and policies will all need to change to accommodate this generation. Don’t fall behind and make sure you understand what millennials look for in temporary housing!
Emergency Stays/Evacuees
With 2017’s abundance of natural disasters, the States, as well as other countries, had an increase in temporary housing needs. With catastraphic hurricanes, uncontrollable wildfires, and other devastating displacements, thousands of homeowners found refuge in temporary housing. Due to the massive need, people who would not normally need housing assistance were exposed to the corporate housing industry. As more and more people become aware of temporary housing options, providers should expect the number of disaster-related stays to increase.
Interns
According to CHPA’s 2017 Industry Report, interns claimed the fourth largest reason for a need in corporate housing. As companies continue to globalize, and short-term relocations become easier and more mainstream, this number is also expected to rise in 2018, and the coming years.
What about Self-Bookings?
In 2016, 44% of property owners used real-time booking platforms for tenants to reserve corporate stays on their own. In late 2017, research showed that “69% of all tenants [were] self-booking” (CHBO). As more third-party booking platforms emerge, this number will certainly rise throughout 2018. Renters want the ability to book stays on their own, and they want the ability to book these stays 24/7. Consumers want instant gratification, and providers who can keep up with this trend may witness increased bookings in 2018.
What's happening because of the British Exit (Brexit)?
Perhaps the greatest event on every temporary housing provider’s mind is the Brexit. What UK-based companies are moving because of the Brexit? How will the Brexit impact the temporary housing industry? What about the financial industry? While no one can predict the exact implications of the Brexit decision, a few things are clear:
As companies begin to pull out of London and other cities within the United Kingdom, the top destinations for these businesses to relocate are Frankfurt, Germany; Luxembourg City, Luxembourg; Paris, France; and Dublin, Ireland. This mass migration will result in unprecedented earnings for serviced apartment providers. Relocating employees, traveling businessmen and women, and other travelers will bring great business to these cities- including stays in temporary housing accommodations.
While businesses compete for valuable commercial real estate, corporate housing providers battle for prime housing options throughout the best neighborhoods in preparation for companies, and perhaps thousands of employees, to officially migrate out of the UK.
Even though the UK will not officially leave the European Union until March of 2019, large banks and other businesses will be making moves abroad throughout the course of 2018.
Do you have other serviced apartment industry predictions for 2018? Let us know by leaving them in the comments below.
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