Go Bigger and Go Home – A Look at Real Estate Upsizing

Big homes by CHBO

Have you, like millions of others, watched the whole tiny homes trend develop? People downsizing their possessions to such a degree that living in homes of 300 square feet or less is the foundation of this trend, and yet it remains strong. Only, it is not as strong as another trend, and that one is known as up-sizing. As one article recently joked, “Downsizing? That’s so 2016. Housing trends indicate a move toward bigger, not tinier, homes…” Yet, this is also indicative of a corporate housing trend, too.

What we mean is this – housing supplies in the larger urban areas are on the decline, and more and more are finding that they can only afford tiny properties if they also wish to remain within the city. As that article noted, many move just outside of their cities and opt to invest in or build larger homes. This leaves a lot of smaller properties available within the cities. These then become ideal candidates as short term apartments, which is part of the increasing corporate housing trend.

Big homes by CHBO

These smaller homes are exactly what traveling professionals desire. Rather than an unwelcome stay in a longer term hotel, the short term apartments with their separate living and sleeping areas, their in-building amenities, and their home-like feel are a superior choice.

The corporate housing trend has been veering away from extended stay hotels and instead turning towards furnished and welcoming short term apartments. So, the upsizing trend, which is leading more and more urban dwellers to head to the nearest suburban regions is a good thing for property investors and supporting the corporate housing trend in one or two bedroom apartments.

Naturally, not all areas are in this exact position, but most of the country’s growing metro areas do reflect this shift. For example, the “median square footage of new homes is up 20 percent since 2000, from about 2,000 square feet to about 2,500 square feet… Fifty-six percent of millennials said that having a large home is important to them, compared with 42 percent of Gen Xers and just 35 percent of baby boomers.”

So, if you are eager to invest in corporate housing properties and furnished rentals, you will find that there are more and more of the smaller, short term apartments becoming available. Choose the right neighborhoods and this exodus into the suburbs will actually work to your benefits.

Improve Corporate Housing With Tech Updates

Real estate property manager

Those who own corporate housing properties and short term apartments know that there are a lot of moving pieces involved. It is never just a matter of keeping properties booked and clients happy. There are matters such as upkeep and maintenance, cleaning, insurances, property management and more. This is why tech updates are one way to improve your corporate housing outcomes easily and efficiently.

Property management discussion

If you ask owners of short term apartments and corporate rentals, one thing that seems to constantly come up is the unpredictability of utility usage by a renter. One corporate client may use so little electricity or energy it seems as if they never arrived while others gobble up an entire household’s worth of energy. This can put a crimp in the bottom line, but tech advances can help.

There are now “smart home” options that can be just as effective for short term apartment rentals as everyday homes. They include:

  • Smart thermostats –Smart thermostats – Able to learn a tenant’s habits and needs, they save money by recognizing these patterns and shutting down when the home is unoccupied reducing costs. Adjustments can also be made remotely.
  • Energy monitoring – These apps are everywhere and can be used to monitor the rental property’s use of energy. Revealing consumption patterns can be a good way to work with renters to cut back on waste.
  • Smart lighting – Along with the internet connected appliances, doors and security, you can also have lighting that operates this way. Installing programmable switches, using motion sensing elements and that can be controlled by mobile devices allow lighting costs to be significantly reduced.

With just these tech updates, you can begin to reduce energy consumption that improve your bottom line.

Trends: Investing in More Corporate Housing Real Estate

The answer is “Yes.”

Question: “As a real estate broker does it make sense to learn more about corporate housing real estate investing.”Sold png logo

Why: “Because the survey says people want to buy more!”

If you believe in human evolution you want to believe we continue to do what works and we stop doing those things that do not work.  So it is important to know what current corporate housing real estate landlords plan to do in the future because this will give us the best picture of their current satisfaction.

Spoiler Alert: Yes, Corporate Housing Real Estate Landlords plan on investing in even more real estate in future! – Kimberly


Corporate Housing Investing Real Estate Trends: Do you have plans to buy more real estate?

So, we’ve all heard that the Real Estate Market is back. Based on the responses to our previous question, we also know that corporate housing is profitable.Investment in real estate

Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%).

With that said, we’ve noticed a new trend to watch. In previous years, there was a steady decline in those who said they were done with real estate investing. However, in 2015, the number of respondents who say they’re done with real estate investing rose 5%. This is the first increase we’ve seen in this number since we added this question to the survey in 2010.

We’re seeing some long-term investors exit the market after weathering the ups and downs of the last 10 years. They’re selling their properties and aren’t re-investing right away.

* In the past, some economists said they believed there was a correlation between the slow pace of the real estate recovery and people feeling stifled by banks that didn’t want to lend money at low interest rates. With this in mind, we added a question in 2011 to see if people felt hindered by the banks. Today, this is no longer a factor.

Learn more Corporate Housing Real Estate Trends