Employers have a problem attracting workers. Workers have a problem finding housing. By providing temporary housing for workers, employers can address both problems at once.
Housing Costs Are Surging
Whether you’re renting or buying, finding an affordable home has become a challenge.
Monthly rents are rising at a rate that far outpaces inflation, which is already high enough. According to Rent.com, the national average rent for a one-bedroom apartment is $1,751 as of April 2021. That’s up 26.5% from just one year ago.
Although rent hikes aren’t even across the board, they are being seen in most states. Only Idaho and Nebraska saw rental prices for one-bedroom apartments decrease. In some areas, rents have surged even higher. In Oregon and New Hampshire, rents are up around 84%. In South Dakota, rents have doubled.
Buying a house is getting more expensive, too. According to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, home prices increased 18.8% in 2021. CNN says that this is the biggest increase in 34 years.
Workers Are Struggling to Find Housing
Faced with rising rents and home sale costs, some people are struggling to find affordable housing. This is especially true in certain areas where housing costs have spiked outrageously.
According to KTVB, this is what appears to be happening in Ketchum, Idaho. It’s a small town with a population of only a few thousand people, but rising home costs are making it difficult for the local firefighters, teachers, nurses and service workers to afford housing. A controversial idea to let workers sleep in tents was even suggested.
Workers in big cities can have trouble, too. There have been many anecdotes about tech workers in Silicon Valley having to live in their vehicles, and that was before the current rent increases made housing even more unaffordable.
Moving in Can Seem Impossible
Even when workers should be able to afford the monthly rent or mortgage, move-in costs can be out of reach. For example, depending on local laws, some landlords require up to three months’ rent before tenant can move in. Saving that up when you’re just start a job might not be possible.
People who want to buy can face a similar situation. In addition to the down payment and other moving costs, they can also have trouble closing a deal in a hot housing market.
But Employers Need Workers
For many workers, the solution to the housing crisis might be to stick to remote work so they can live where housing prices are reasonable. According to FlexJob, money savings and location independence are two key advantages of remote work.
However, not all jobs can be done remotely. Some employers need workers to show up at their physical location. If that location happens to be in an area with high housing costs, there might be a problem.
And it’s definitely a problem, especially when employers are already struggling to retain talent amid high turnover rates.
Is Temporary Housing the Answer?
As housing prices increase, some businesses are finding that they have to provide housing if they want to attract workers. According to Bridge Michigan, some business owners are offering housing to workers so they can attract enough workers to keep up with summer tourism. The Portland Press Herald describes a similar situation in Maine, where businesses that rely on tourism are finding it necessary to provide housing for staff.
Temporary housing can help temporary or seasonal workers who only need to be in the area for a few months. Permanent workers can also benefit from temporary housing, which can give them enough time to save up for a down payment and look around for the right home. In a tight labor market and expensive housing marketing, temporary housing might be just the benefit that that employers need to attract top talent.
Insurance Coverage for Temporary Housing Risks
Housing benefits might solve some of the problems that employers and employees are facing, but there are risks. A lot can go wrong during a short-term stay, and without the right insurance, losses could lead to ugly disputes and costly repairs.
RIG offers FLEX-Stay insurance for short-term stays of less than 180 days. You get great coverage, low deductibles, and low daily rates for both personal property and liability coverage. If a loss occurs, you can count on fast claims handling.
Do you need insurance coverage for temporary housing risks? Learn more.