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Pricing, Policy, and Travel Impacts in Global Temporary Housing – Q1 2024
Dwellworks Living MarketingDwellworks Living manages over 20,000 booked reservations in temporary housing every year and delivers temporary living program solutions for the relocation and business travel needs of hundreds of Fortune 1,000 companies. Every quarter, we update average daily rates (ADRs) in key bellwether cities and provide insights from local experts on the trends we’re watching.
Dwellworks Living saves our clients between 10-15% on the cost of their temporary accommodations compared to booking on a one-off or retail basis with individual suppliers. Using our epicR database, we leverage volume and source vetted and competitively priced housing from our 3,500+ corporate housing partners worldwide. Then, we tailor the top options and post-booking services to meet the customer’s expectations.
Read on for the pricing, policy, and travel trends Dwellworks Living is keeping an eye on in the first quarter of 2024.
Pricing Impacts: All Quiet for Now as Supply and Demand Level Out
Almost two years post-pandemic, pricing trends are balanced in almost every key market worldwide. As supply and demand level out (and in some markets, as demand decreases) no location is seeing price increases like those experienced this time last year and in late 2022. In the US, temporary living options are in general good supply, meaning average daily rates (ADRs) are mostly unchanged from Q4 2023. The same can be said for Mexico. However, ADRs in cities like Houston, Silicon Valley, and New York City may change in Q2 and Q3 as companies book housing for large intern programs. Read our case study: "Your Summer Intern Housing Solution A Large Employer Case Study 2023" on how we assist with intern programs if your company is still seeking housing. Mexico City ADRs may also change this year as the capital city and other locations in Mexico are increasingly popular hubs for US manufacturers looking to leverage their expanding investments in nearshore operations.
Across Europe, inflation is increasingly under control, leading to stabilized pricing overall. The only major city seeing a higher ADR is Paris, as 2 and three-bedroom prices are increasing. APAC markets are also stable, but cities like Hong Kong, Tokyo, and Hyderabad are also becoming increasingly popular for temporary stays, so Dwellworks Living experts are keeping an eye on ADRs and supply solutions in the coming months.
Below are ADR trends in select key markets at the start of the first quarter.
Policy Impacts: New Considerations for Short-Term Rentals
Several cities worldwide have introduced new policies affecting how short-term rentals are regulated. In the US, New York City landlords renting out properties for leisure travelers staying for 30 days or fewer must follow stringent reporting and operating guidelines. The corporate temporary housing market, however, is virtually unaffected by this as the impacted rentals tend to be Airbnb options not professionally managed furnished apartments. See our blog on the topic here. Provincial and Federal agencies in Canada are also considering similar laws at this time.
Cities like Munich and Amsterdam continue to operate under closely monitored housing laws. In Amsterdam, there are 50% fewer rental properties available compared to 2021. In Munich and its surrounding cities, supply is strained because of limited new builds and maximum occupancy in available rentals, with housing availability at just 2%.
Travel Impacts: All Eyes on the Paris Olympics
Tourism and leisure travel will likely significantly impact rental availability in Paris and much of France this summer for the Olympic and Paralympic Games. As stated above, temporary accommodation pricing remains steady now, but supply is expected to get tighter and prices higher by Q2.
Dwellworks Living recommends that any company considering the need for corporate, temporary accommodations book as far in advance as possible, so essentially now. Travel within the city will be very challenging in late July/early August. Read our full report on the impacts of the Olympic games here.
To view all Dwellworks Living’s temporary living services, visit our Solutions page. To view our properties around the world, visit our Properties page.
Dwellworks Living: Global Solutions for Corporate Accommodations
Dwellworks Living is committed to providing our clients and their employees with the best possible corporate housing and serviced accommodations experience. With a global network of property partners, a tri-regional team of customer experience and supply chain professionals, and a wide range of services for global mobility and travel customers, Dwellworks Living can provide the perfect corporate housing solution for any need or budget.
Dwellworks Living is the global corporate housing solution of Dwellworks, an award-winning, business-to-business provider of global mobility and business travel services. As a global leader in corporate housing and serviced accommodations solutions, Dwellworks Living is uniquely positioned to meet the temporary living needs of businesses and their employees who are relocating or traveling on short-, medium- or extended-stays. With 60,000 high-quality professionally managed properties in over 125 countries worldwide, Dwellworks Living is the preferred housing solutions partner of many Fortune 1000 and leading relocation management companies.
Dwellworks Living's corporate housing and serviced accommodations solutions are designed to help businesses attract and retain top talent, support employee productivity, and ensure a smooth and successful relocation or business travel experience. In addition to our core global accommodations management services, Dwellworks Living, through our worldwide network of local experts, is uniquely capable of offering our clients expanded and related services, such as area orientations, group move assistance, destination services and intercultural training.
Whether you have corporate housing needs for an individual employee or a large team, Dwellworks Living can provide the serviced accommodations solutions you need anywhere in the world to ensure a safe and successful stay. Please contact us to learn more or visit our Properties page to begin your search for global corporate housing accommodations.