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Hilled Land Furnished Apartments

How Much Does Corporate Housing Cost?

The most common question regarding corporate housing is “how much does corporate housing cost?” It’s a question that everyone needs to know the answer to, to evaluate if staying in a corporate housing apartment makes more sense than staying in a hotel room. Yet very few corporate housing companies (chc’s) publish their prices, so it takes more work to find out how much it costs, whereas hotel rooms are easy to evaluate the cost. You can find their prices on any number of websites, such as Booking.com, Travelocity.com or the hotel’s own website.

What Factors Impact Corporate Housing Pricing?

If you’ve done any research for corporate housing or furnished apartments, you’ve likely found that pricing can vary greatly between units, companies, and areas. This is because there are many factors that can affect what you end up paying for your corporate housing. Keep reading to see what some of those are.

1. Rent

The biggest factor that impacts the price of a corporate housing unit is how much the rent costs for the apartment. The average corporate housing rate is a little more than double the rate of what an unfurnished apartment rents for. As those of us who have done any apartment shopping know – those prices can range quite a bit depending on the location of the apartment building, how new the apartment community is, the length of the lease signed with the apartment’s management company, and several other factors. The majority of chc’s provide inventory at only class A properties. These are properties that are the newest (less than 15 years old), have the best amenities and are in the best neighborhoods. Class A properties charge higher rents, but they are also the most desirable apartments to stay in.

2. Business Models

Some chc’s have different business models than others, which will also affect their pricing. Some companies will only sign “match leases”. This means that if you are staying with them for 90 days, they will sign a 90-day lease with the property that ‘matches’ your lease so that they are not at risk of having their inventory sit empty after you move out. Other chc’s (such as Hilled Land Furnished Apartments) sign leases that are 12 months or longer with the property and take on the risk that they will be able to ‘backfill’ the apartment or lease it to another person when you move out. A 90-day lease can be close to twice the cost of a long-term lease. This means that a good chc that signs long term leases and is able to keep their inventory occupied will be able to pass on the savings of the lower costing lease to their customers.

3. Stacking

Another common business practice that affects some chc’s rates is called stacking. Stacking is when a chc doesn’t have the inventory available for your stay, but you’ve contacted them for availability. So they call other chc’s and get quotes from them, then turn around and quote you on the other chc’s inventory with a profit added on top of the rate they were quoted. We discuss stacking in more detail and how to avoid getting ‘stacked’ in our post on how to select the right corporate housing company. It is very common in the industry and many people get taken advantage of because they are unaware of it. They don’t do their homework to find cheaper alternatives, or they are under the impression that more expensive means better. Sometimes more expensive is better, but when it comes to stacking, more expensive is just that – more expensive.

4. Differences in Corporate Housing Companies

Another factor in the cost of corporate housing is how well run the chc is. At Hilled Land, we have gotten to know many other chc owners and their philosophy for how they run their companies. It is not at all uncommon to find a chc that prides itself on how much overhead they carry. One chc we are familiar with employs 10 people for every salesperson they have on staff. Needless to say, their costs are also much higher than the average. They have people telling people to tell people what to do.

5. Length of Stay

Another factor in corporate housing pricing is the length of time that you are planning on staying. Usually, chc’s will give pricing breaks for longer stays, so the longer your stay, the less expensive it will be. At Hilled Land, we give pricing breaks at 90 days, 6 months, 9 months and a year or longer. Price breaks at these intervals are the most common, but each chc may have a different policy. It is also typical for chc’s to require a minimum stay of 30 days. At Hilled Land, we allow stays for less than 30 days if we have gaps between our bookings that allows for this, so it is worth while to ask about availability if your stay will be less than 30 days.

Corporate Housing Rates Across the Country

So what are the average rates of corporate housing in the largest metropolitan areas around the country? At Hilled Land, we’ve done extensive research to determine what the average rates are in different parts of the Greater Houston area. Rates are different in Pearland than they are for downtown or the Galleria area. But using the data we’ve collected, we feel confident that we’ve determined what average pricing is for the different areas of Houston. We’ve been able to boil average rates down to a multiple of rent costs, and using that formula we’ve extrapolated this information to determine what average rates are in the largest metropolitan areas around the country. This was done by selecting a property management company that is popular with chc’s, that has apartments in all of these cities and comparing the rates of a class A apartment with this same property management company from city to city. Keep in mind, that rates can vary greatly in a metropolitan area depending on the location in the city, so to compare apples to apples, we’ve studied the financial district for each of the following locations to compare prices for a stay of 30 days. Keep in mind that economies will change from city to city over time, so this is a snapshot for 2020.

Average corporate housing rates in the financial district for the following cities:

  • New York City: $330/day 1br, $480/day 2br
  • Chicago: $167/day 1br, $220/day 2br
  • Los Angeles: $145/day 1br, $220/day 2br
  • Dallas: $120/day 1br, $140/day 2br
  • Houston $120/day 1br, $140/day 2br
  • Washington DC: $145/day 1br, $220/day 2br
  • Miami: $120/day 1br, $150/day 2br
  • Philadelphia: $147/day 1br, $210/day 2br
  • Atlanta: $110/day 1br, $140/day 2br
  • Boston: $147/day 1br, $230/day 2br
  • Phoenix: $110/day 1br, $140/day 2br
  • San Francisco: $220/day 1br, $330/day 2br
  • Seattle: $183/day 1br, $279/day 2br
  • Denver: $135/day 1br, $184/day 2br
  • Minneapolis: $130/day 1br, $176/day 2br

If you have any questions about corporate housing in the Houston area or are looking for a furnished temporary apartment, contact Hilled Land.