FQ Blog

Furnished Rentals on the Rise for Business and Pleasure

CNN and New York Magazine have confirmed it. Furnished rentals have become the preferred way to stay for an increasing number of business travelers and vacationers alike. Hotels are out, serviced apartments are in.

The numbers reflect it:

  • Hotel average occupancy rates are down 5.4% nationally, falling from 63% in 2005 to 57.6% at the end of 2010, according to Smith Travel Research
  • CNN quotes a September 2010 study that found 42% of travelers would consider a vacation rental while traveling for business
  • In 2010, the corporate housing industry grew 12% in the U.S.
  • The average stay in corporate housing has increased from around 45 days to around 125 days
  • In New York City, vacancies are down to less than 1%. Within that market, furnished rentals are a “noticeably intense niche, and one that’s growing,” reports New York Magazine
  • The number of furnished rentals in Manhattan reached a peak this past quarter (1890 listings, up from 827 in the same period of 2008)

Why? The articles cite many reasons that the furnished rental market is skyrocketing—reasons that we at Furnished Quarters are quite familiar with. Here are some quotes from CNN that help explain why more and more people are seeking homier accommodations while on the road:

“Living in hotels can be very depressing. Corporate and vacation rentals are homes. This is good for your head.”

Mark Mule

Business Traveler

“Corporate housing is … specific to [clients’] unique needs and reduces stress for the user, which in turn makes them more productive at their jobs.”

Amanda Cook

Director of Membership and Marketing, CHPA (Corporate Housing Providers Association)

New York Magazine offers a few more reasons:

  • “The financial climate has buyers skittish and banks reluctant to lend, and that’s largely why the rental market has come alive this year.”
  • “Many of the takers are newcomers on temporary assignment…and they’ll pay extra just to avoid committing to a full-year lease until their firms commit to them permanently.”
  • “Some expect to buy but want to take their time and know they can afford to, given the stagnant sales market.”
  • “Others go the furnished route simply because it’s an easier, faster way to secure an address.”
  • “[Many renters] aren’t looking for a generic midtown crash pad. The new renters are insisting on residential neighborhoods like the Upper West Side, the Upper East Side, and the Village. They’re not content with space that looks like a hotel room.”

We at Furnished Quarters agree that you shouldn’t have to be content with a hotel room. That’s why our whole business is based around doing everything possible to help you live locally. We provide all of the comforts—and luxuries—of home.

We hope you’ll visit us regularly here at Furnished Quarters’ new weekly blog. We’ll be providing you with news, trends, and tips to help you make the most of your experience with temporary furnished rentals, serviced apartments, and short-term housing.

If there’s something you want to know about, please comment below and let us know! The next time you travel, don’t leave the quality of your stay up to chance—call us and live local.

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