If you’re going to visit a city for a quick vacation or a short business trip, you might stay in a hotel or book a bedroom through a home-sharing site. But if your stay lasts longer than a few weeks, hotels and homestays can get pricey quickly. Add in the costs of dining out for breakfast, lunch and dinner and your expenses can really add up.
That’s where corporate housing comes in. Corporate housing can be significantly less expensive than hotels. Plus, the bill is sometimes picked up by employers or insurance companies. Corporate housing providers estimate that corporate apartments can cost up to 50% less than a hotel.
What Corporate Housing Costs
The short answer: The average rate for corporate housing in the United States is $150 a day, according to the Corporate Housing Providers Association. Note, however, that corporate housing usually is priced and leased by the week or month instead of by the day.
The longer answer: There’s a wide array of corporate housing choices available, with options to suit every budget. Expect to pay from $70 to $200 a night, depending on the size of the apartment and the city where it’s located. That upper end of the price range will be for markets such as New York and San Francisco. On the lower end are markets like Nashville, Tulsa and Salt Lake City.
As for size, corporate housing apartments can be studios but more often have one or two bedrooms and occasionally three bedrooms. At a lower price point, especially in major cities, you’ll find spaces similar to extended-stay hotels with kitchenettes. At the upper end, you’ll see rentals that more closely resemble luxurious private homes.
Corporate housing always comes fully furnished and serviced, so occupants don’t need to worry about providing furniture, kitchenware or bedding, like they might if they were on a month-to-month lease. The rate for corporate housing also includes all utilities.
Compared to comparably priced hotels, corporate housing also offers more square footage per dollar, and includes more of the comforts of home.
A Corporate Housing Cost Comparison
To really understand corporate housing’s value proposition, let’s take a look at how it stacks up against hotel stays in some of the nation’s top markets.
In the Big Apple, the average hotel room cost per night was $254 in 2015, according to Statista. In 2013, the average daily cost of corporate housing in Manhattan was about $165 for a studio and $213 for a one-bedroom apartment. Those are savings of 35 percent and 16 percent, respectively.
In the City by the Bay, the average hotel rate in 2015 was $221 per night. Corporate housing in San Francisco was about $172 for a studio and $200 for a one-bedroom apartment in 2013. Your savings: 22 percent and almost 10 percent, respectively.
The Windy City’s average hotel room price was $172 per night in 2015. In contrast, corporate housing in Chicago cost about $112 for a studio and $133 for a one-bedroom apartment per day in 2013. So a stay in corporate housing would save you 35% or 23%, depending on the size of the apartment.
As you can see, corporate housing is a great value. Plus, it’s generally tax-free for stays of 30 days or more.
Who Pays for Corporate Housing?
In the case of executives, consultants or interns working within certain industries, employers often pay for corporate housing.
Insurance companies also may foot the bill for corporate housing when providing accommodations for homeowners who have been displaced by natural disasters, fires or other qualifying events.
Corporate housing can also be a great option for vacationers, students and extended-stay travelers of all types.
Corporate Housing Is a Great Value
Clearly, corporate housing has its perks. Compared with renting a hotel room, it’s often less expensive, more comfortable, and better situated.
When used as an alternative to leasing a home, corporate housing offers a much higher level of service and a suite of amenities to which most renters don’t have access. Plus, the commitments are minimal, making it a flexible option for stays of undetermined lengths.
Consider corporate housing for your next extended stay. It’s a flexible, affordable option with a host of great advantages.