How Much Does Corporate Housing Cost in 2023?
Nationwide, the average cost of a one bedroom fully furnished apartment is $3000 per month. In the rapid inflation of today’s marketplace, the answer to “how much does corporate housing cost in 2023?” is, “more than last year.” Read on to see the national average cost of two and three bedroom corporate apartments, and learn the factors that affect corporate housing rates.
Cost of Corporate Housing
Based on the data for 2023, we will focus on:
- The average price of corporate housing and factors affecting it
- What corporate housing is and who corporate housing is right for
- Types of corporate housing
- Prices for corporate housing compared to other types of accommodation
With the data in hand, Alamo Corporate Housing in San Antonio will help you find the specific answers you need about corporate housing costs in 2023.
How Much is Corporate Housing?
Based on the most recent data from corporate housing websites in five major American cities, the average price of one bedroom corporate housing is $97 per night. The costs provided are all-inclusive and represent the averages of the lowest starting rates for five popular lodgings in each area. They’ve been retrieved in 2023, and reflect the average cost of corporate housing amongst providers in those cities.
*Note: We’ve sorted costs by the number of bedrooms you’ll require.
- Cost of One Bedroom Corporate Housing in New York City: $3783 per month ($122 per day)
- Cost of One Bedroom Corporate Housing in Atlanta: $1629 per month ($53 per day)
- Cost of One Bedroom Corporate Housing in Los Angeles: $3603 per month ($116 per day).
- Cost of One Bedroom Corporate Housing in Chicago: $2011 per month ($65 per day)
- Cost of One Bedroom Corporate Housing in San Francisco: $3972 per month ($96 per day)
In 2023, one bedroom corporate housing averages to around $3000 per month, or $97 per day.
- Cost of Two Bedroom Corporate Housing in New York City: $9388 per month ($303 per day)
- Cost of Two Bedroom Corporate Housing in Atlanta: $2160 per month ($70 per day)
- Cost of Two Bedroom Corporate Housing in Los Angeles: $5934 per month ($191 per day).
- Cost of Two Bedroom Corporate Housing in Chicago: $2766 per month ($89 per day)
- Cost of Two Bedroom Corporate Housing in San Francisco: $5542 per month ($179 per day)
In 2023, two bedroom corporate housing averages to around $5158 per month, or $166 per day.
- Cost of Three Bedroom Corporate Housing in New York City: $11067 per month ($357 per day)
- Cost of Three Bedroom Corporate Housing in Atlanta: $2237 per month ($72 per day)
- Cost of Three Bedroom Corporate Housing in Los Angeles: $11090 per month ($358 per day).
- Cost of Three Bedroom Corporate Housing in Chicago: $5399 per month ($174 per day)
- Cost of Three Bedroom Corporate Housing in San Francisco: $7995 per month ($258 per day)
In 2023, three bedroom corporate housing averages to around $7558 per month, or $244 per day.
*Note: The average is significantly more for major cities like New York City and Los Angeles, as three-bedroom corporate housing there is rare.
Factors that Affect Corporate Housing Rates
Several factors go into the variance in different corporate housing providers’ rates. Be sure to consider those which might apply to your situation.
- The good news with corporate housing is that longer stays will get you lower rates. Rates are higher for stays lasting only one month, but can decrease significantly when you start with three months guaranteed. When you sign your lease agreement, you save more if you are committing to three, six, nine, or twelve months.
- The location of the corporate housing can affect its price quite a bit. The cost of corporate housing will generally follow housing prices in your destination city. As a result, corporate housing is more expensive in Los Angeles than it is in Cincinnati, for example.
- The number of bedrooms you need is another major factor affecting your rates. The more rooms you need the more money you will pay.
- Upgrades and luxury services can often be added to your corporate housing stay, and will increase your rates. Standard corporate housing is all-inclusive and comes with all the amenities of a hotel, plus the additional space.
- Corporate housing can also accommodate specific needs, such as children or pets, but may have higher rates to cover additional costs like touch-ups and extra amenities i.e. cribs, toys, gates etc.
And if you’re going traveling in 2023, here’s another thing to keep in mind. Recently, concerns about inflation have resulted in less travel, which has led to a surge in temporary housing supply (in some markets). Though it has not happened yet, corporate housing prices are forecasted to drop in 2023.
What is Corporate Housing?
According to the Corporate Housing Providers’ Association, “Corporate housing is fully furnished temporary housing, typically in an apartment setting.” It’s often lent from companies directly to other companies or businesses. Most corporate housing provides more space than other types of longer-term accommodation, making them more comfortable to live in.
Corporate housing is frequently located in major metropolitan areas, close to workplaces and daily amenities. Rates are often more efficient for longer stays as well. However, much available data about the cost of corporate housing is outdated. With inflationary pressures, the rise in costs for housing (along with everything else) has simply been too rapid in 2023.
That doesn’t mean corporate housing is any less of a good option for saving money, though. If you’re planning on a longer stay, it’s still likely to be more cost-efficient than a hotel or Airbnb. Keep reading as we take an in-depth look at how the cost of corporate housing compares to Airbnb and other temporary housing options.
Is Corporate Housing For Me?
Corporate housing isn’t for everyone, but it’s a fantastic option if you need flexible lease fully furnished temporary housing for 30 days or more. This may be applicable for:
- Business travelers
- Military personnel on temporary duty travel
- Employees in the process of relocation
- Households that have been temporarily displaced
- Households in the process of renovation
- People in need of long-term medical care
- Companies that need to house employees.
Corporate housing’s main benefits are all-inclusive pricing and a home away from home living environment. It provides 24/7 service with fully furnished lodgings including laundry, kitchen and dining accessories, and significantly more living space than a hotel. Additionally, you’ll pay lower rates than a hotel for longer stays.
Corporate housing requires a minimum stay of 30 days. Hence, corporate housing is ideal for people who need a place to live temporarily for a longer period, rather than have a short stay. If you need short-term lodging for a few week, or just a few days, you will find more cost-efficient options in other types of accommodation.
Types of Temporary Housing
- Traditional Hotels: these are best for short stays. You get a comfortable and fully serviced room and a great experience for a few nights. However, fees associated with those services can add up quickly, and the space can be quite small.
- Airbnbs/VRBOs: if you need to stay for about a week, vacation rentals such as Airbnb and VRBO can offer you a better price and more space. However, they most likely aren’t serviced, and their location and quality can be hit or miss.
- Extended Stay Hotels: these are more accommodating of stays lasting about 30 days. They offer traditional hotel features, with discounted rates and more self-serviced elements for stays of over a week or so. They are still hotels, though, and space can become an issue.
- Rental Apartment Homes: for stays of over a month, a rental apartment home can offer good monthly rates and plenty of space. They have the same problem as vacation rentals, however, where quality can sometimes be questionable.
Corporate Hotel Price
- Hilton Honors This reward program for the Hilton chain of hotels offers rewards and a points system for staying at its branches. Rewards include offers such as up to 17% off when booking ahead, and points can be used to book accommodation. According to Statista, Hilton’s average daily rate worldwide (not in the US) was $151.01 USD.
- Hyatt Leverage This program for the Hyatt chain of hotels advertises up to 15% off standard rates for business travelers. According to Statista, their standard average daily rates in the United States were $245 USD and $151 USD in 2022. Full-service hotels cost more than select-service hotels.
- Marriott Bonvoy: The Marriott hotel chain has a robust rewards system on its Business American Express credit card. For $125 USD per year, business travelers can enjoy 7% off standard rates, Gold Elite program benefits, and more. Statista suggests that Marriott International’s hotels’ average daily rate was $203.44 USD in North America as of 2021.
Corporate Housing Pricing vs Corporate Hotel Pricing
Corporate hotel pricing can provide considerable discounts from the hotels’ base prices. However, those discounts are being applied to higher base prices in the first place! Corporate housing will save you money when compared to corporate hotel rates. For the extended stays catered to by corporate hotels, benefits like singular free nights and luxury services do not make up for the savings you’ll gain by choosing corporate housing.
Corporate housing has all-inclusive pricing for the same amenities that corporate hotels may charge extra for–and you’re paying less for a larger space. There are also no cleaning fees. Often, corporate housing might have discounted rates for staying for longer monthly periods. Take popular corporate hotel programs such as Hyatt Leverage and Marriott Bonvoy. The hotels’ standard rates within the United States, as covered previously, might average around $188 USD per day. Their corporate deals might reduce prices to around $189.19 for Marriott, and $128.35 or $208.25 for Hyatt. These calculations don’t include free nights from spending point rewards. With corporate hotels you can also find reduced rates for the same hotels through AAA discounts. The discounts range from 5% off for Marriott and Hilton, to 10% off for Hyatt.
Otherwise, senior discounts can get you even higher savings, depending on the hotel chain. Corporate housing rates will still be able to help you save more, though. The average daily rate of corporate hotels in 2017 was $161, but this was an average of one, two, and three bedroom furnishings. When you are traveling solo, it is hard to beat the average daily rate of corporate housing in 2023 i.e. $97 per day. Choosing between one-bedroom corporate housing and a hotel with corporate rates will save you, on average, $92 per night. Paying $97 instead of $189.19 per day would save you around $8,574 over three months in 2023. Even accounting for inflation, it’s definitely not a negligible amount saved!
Corporate Housing vs Extended Stay Hotel
Corporate housing and extended-stay hotels can have similar rates for savings. Both offer discounted rates for longer stays. It’s corporate housing’s expanded space, 24/7 service, home away from home amenities, all-inclusive pricing, and lower rates for three months or more that give it an edge in price.
An extended stay hotel has a hotel room’s size, while corporate housing is sized more comfortably. This can be important depending on who you’re traveling with and what you need to do while traveling. Corporate housing will generally include more amenities and be serviced without any cleaning fees (that may be added to extended stay pricing). Customer service at extended stay hotels can also be a bit more miss than hit: depending on intermittent staffing.
Corporate housing can provide a better sense of community during your stay, though. It provides a better space to get to know your neighbors than a hotel would. Meanwhile, a possible issue with extended-stay hotels is neighborhood safety. Though corporate housing is often located residentially, extended-stay hotels can be in more less desirable areas. Another complaint that travelers have about extended-stay hotels is their lack of support and lack of cleanliness. Meanwhile, corporate housing is regularly cleaned with 24/7 care, much like serviced apartments.
Corporate Housing vs Airbnb/VRBO
Facilities-wise, corporate housing and vacation rentals can seem quite similar. Both provide a larger space and home-level furnishing for the “home away from home” experience. But looking deeper into it, Airbnb and VRBO are better for shorter stays, and less reliable for longer stays of 30 days or more–when corporate housing is superior.
Corporate housing is flexible from month-to-month in terms of lease renewal. If your business travels get extended for whatever reason, flexible lease terms will let you extend your length of stay at monthly intervals. Airbnb and VRBO can also allow you to extend your stay, but the major downside is you may lose the property at odd intervals if someone else has booked it before you can extend your stay. An Airbnb is fine for stays where you can plan ahead for how long you will stay, such as on a vacation. But if you end up needing to extend your stay, issues may arise.
Corporate housing and vacation rentals have similar amenities, but corporate housing companies tend to include all services in the fees. Vacation rentals may have extra fees. Airbnb, for example, lists its own service fee, possible cleaning fees, and possible extra guest fees. In general, issues like extra fees and conditional rental renewal won’t be much of an issue for shorter-term stays. In fact, corporate housing arrangements do not allow for stays of less than 30 days. Bottom line: Airbnb and VRBO are great for short stays of less than 30 days, while corporate housing is ideal ofr longer stays of more than 30 days.
In most cases, an Airbnb rental service’s app is the best way to get support during your stay. You’ll also likely be dealing with the individual that owns the place where you’re staying, which can feel restrictive. As for safety, both corporate housing and Airbnb/VRBO’s make it possible select safer places that are well-maintained for temporary housing. You’ll be able to see pictures of both kinds of accommodations so you can vet the living standards of your home away from home.
So, what’s the average daily rate for an Airbnb/VRBO rental in the United States? In mid 2022, the average cost per day was $291. This would add up to $8730 per month. That said, for longer stays, Airbnb owners will often give you a discount as well, and the average price per day for a week or month long stay can get as low as $105 or $3,255 for one month. Assuming a $97 daily rate for corporate housing, you would pay $3,007 per month. This would save you $248 in a month, and potentially much more because Airbnb’s are not typically as flexible beyond 30 days.
*Note: the average daily rate for an Airbnb is substantially higher in major cities like New York City and Los Angeles.
The Bottom Line on Corporate Housing Costs
When answering the question “how much does corporate housing cost in 2023?” you’ll need to know how long you will stay, the number of rooms you need, the location of your property, and the available amenities. Though costs for temporary housing have gone up with inflation, corporate housing costs still provide competitive savings when compared to other temporary housing accommodations for extended stays lasting longer than 30 days.
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