The declining housing market is definitely a large part of the troublesome economy, but one part of the housing market that is seeing a boom is the corporate housing sector.
Americans are beginning to face the facts and are relocating for jobs or traveling to cities where they know they will find more work. Because it is difficult to sell their homes and purchase a new home in the city they are moving to, corporate housing has become an option – even the key solution – on both ends of the spectrum.
“Homes are the burden around their necks that they don’t know what to do with and corporate housing is a solution,” said Kimberly Smith, CEO of Corporate Housing By Owner, in an interview with CNBC.
Corporate Housing By Owner indicated in a study that many furnished rental properties listed on its site are from homeowners who need to relocate and can’t sell their homes. They are opting to rent out their homes instead. On the flip side, those homeowners are renting corporate properties in the new city they have relocated to – thus giving a second boost to the corporate housing industry.
Additionally, single family private homes may also be a cheaper and more appealing option for relocating families, as urban rental rates continue to increase due to high demand and limited availability.
“If you are moving your family across the country, a single family home might be a better solution than being in a small rental apartment box,” says Smith.
For more on the corporate housing boom, watch the clip below.
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