Furnished Apartment Market Flourishes as Demand Shifts from Corporate to Individual Travelers

Strategic Insights -

The demand for furnished apartments is growing rapidly, with the sector expected to continue expanding as younger generations prefer flexibility and experiences over owning possessions. This shift in demand has been driven by the growth of remote work and the increasing popularity of short-term rentals. In New Jersey, cities such as Jersey City, Hoboken, Clifton, and Florham Park are seeing a surge in demand for furnished apartments.

Key Takeaways:

  • The furnished apartment market has grown significantly, with 70% of demand coming from individual travelers and 30% from corporate clients, according to Alex Chatzieleftheriou, co-founder and CEO of Blueground.
  • The sector is expected to continue growing as younger generations prefer flexibility and experiences over owning possessions.
  • Furnished apartments are typically booked with month-to-month leases, providing a sense of community and consistency in services and support.
  • The rise of short-term rental platforms like Airbnb and Vrbo has helped benefit the furnished apartment market by making people more comfortable using online booking systems.
  • Furnished apartments offer a more condo-like environment with personalized experiences, compared to traditional hotels and rentals.
  • The process of booking furnished apartments is easier and faster than traditional rentals, reducing the burden of application approval and furniture purchasing.
  • Furnished apartments can sometimes be cheaper in the long run, considering the inclusion of utilities, Wi-Fi, public amenities, and maintenance costs.

Statistics:

  • 70% of demand for furnished apartments comes from individual travelers, while 30% comes from corporate clients (Blueground).
  • Furnished apartments are typically booked with month-to-month leases.
  • The number of furnished apartments available across the nation has grown significantly, driving demand and expansion of the sector.
  • Furnished apartments can be 15% to 20% more expensive on a monthly basis than traditional rentals.
  • The furnished apartment market now accounts for a significant portion of the overall rental market.

Sources:

  • Alex Chatzieleftheriou, co-founder and CEO of Blueground
  • Lea Anne Welsh, president of AVE and COO of Korman Communities
  • NorthJersey.com (article "Furnished apartment market flourishes")