Great news for Corporate Housing, the fifth year in a row, more than 9 out of 10 respondents report their properties are profitable or break-even.
Over the last few years we have seen an influx of new investment owners entering the market. And they are paying more per square foot for their property purchases than that of previous owners. This means their overall expenses are now greater than the former owners. of these properties and profitability is therefore reduced. Owners with a lower cost basis and with rising rents have seen increased profitability. This year however, factoring in these new owner’s profitability went down a bit.
Investment Real Estate Trends: Plans to Buy More?
We’ve all heard that the real estate market is back and based on the responses to our previous question, we also know that corporate housing is profitable. Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (42%), than “No, I’m done with real estate” (21%).
Do you plan to buy more? Tell us your plan in 2018 in the comments below.
To learn more about this topic and other results, view the CHBO annual report.
To view Historical Reports, visit By Owner Report here.
- Annual Corporate Report: Outlook on Profitability.
- About the Independent Corporate Housing Real Estate Segment: Outlook & Profitability
- CHBO Annual Report Review: Corporate Housing Landlords – How Long and Why
- Find out the Top Property Locations and Number of Properties Landlords Manage
- CHBO’s 10th Annual Corporate Housing Survey Proves This Industry Segment Is Profitable