Ready to Embrace a Nomadic Lifestyle? The Rise of Fully-Furnished Apartments

Once considered an innovative way to house workers on business trips, this concept has now evolved into a popular choice for digital nomads and anyone looking to explore different locations temporarily without signing a lengthy lease.

The market for furnished apartments consists of leases for semi- or fully-equipped living spaces meant for stays lasting one month or more, typically found in cities or urban settings. In contrast, standard rentals involve signing a year-long agreement wherein occupants must provide all their furnishings themselves.

The popularity of this type of accommodation initially stemmed from companies needing to relocate their staff temporarily for work assignments outside their usual locations. However, the demand has expanded to encompass telecommuters and frequent travelers who prefer not to be tied down to a single residence. In New Jersey, these dwellings can commonly be found in cities like Jersey City, Hoboken, Clifton, and Florham Park.

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“It simply strikes me that this will become the next major trend. It has been expanding for quite a while, yet it’s poised to keep growing,” stated Alex Chatzieleftheriou, who is both the co-founder and CEO of the company. Blueground It will keep expanding because younger generations lean towards this choice rather than possessing personal belongings. They favor experiences and versatility along with flexibility.

Chatzieleftheriou mentioned that he established Blueground, a firm providing an elegantly selected collection of fully-furnished rental apartments worldwide, back in 2013 when he encountered difficulties finding suitable furnished accommodations during his business travels.

Although he initially founded the company with the aim of providing more accommodation choices for business travelers, he observed that the platform is predominantly utilized by individuals journeying alone.

As I began developing the business and introducing top-notch products to the market, Chatzieleftheriou noted, “I discovered that the interest extends far beyond just commercial sectors.” He further explained, “Commercial needs account for merely 30% of our demand; conversely, around 70% comes from people who rent apartments for durations ranging from several weeks to a year or longer.”

This sentiment was shared by Lea Anne Welsh, who serves as the president of AVE and COO of Korman Communities She mentioned that she has observed the shift where the demand was previously around 80% for business travel and 20% for personal travel, but now it’s nearly an equal division between the two.

Welsh mentioned that apart from younger demographics, she has observed an increasing interest among older individuals who wish to offload their current properties as they transition into the next chapter of their lives. Additionally, some seek to enjoy a fresh experience for one or two months in a new location.

She mentioned that AVE—a branded furnished apartment chain with four sites in North Jersey and a total of 24 throughout the U.S.—seeks to foster a communal atmosphere for guests, something many new arrivals from homeowner backgrounds typically seek out. In this manner, people can enjoy the luxury rental residence feel without needing to commit to staying somewhere for over a year.

The management oversees all facets of the community since we both own and run it. If you engage with other service providers, they may lease several units from a standard apartment complex and install a lockbox," she explained. "Younger individuals who prefer texting via their phones likely won’t be concerned about places equipped only with lockboxes. However, older couples around 50 or 60 years old who are downsizing from larger homes and value having a strong sense of community will find the ambiance more significant.

In general, Chatzieleftheriou stated that he thinks the larger number of furnished apartments available nationwide is what has contributed to increasing demand. The greater availability provides more chances for individuals to try out this way of life.

He explained that this sector wasn't as prominent at the time due to insufficient supply, largely because landlords were hesitant to invest significant effort for short-term stays. Additionally, apartments needed to be priced uniquely, with differing maintenance requirements. Thus, it was primarily the scarcity of supply facing strong existing demand that prevented this market from thriving further.

What distinguishes fully equipped apartments from Airbnb rentals?

Although the market for fully equipped apartments might seem quite alike to what you'd find on short-term rental sites such as Airbnb and Vrbo, there is actually a discernible distinction.

Fully equipped apartments typically serve business travelers and individuals staying for an extended period, often leased on a monthly basis. In contrast, platforms like Airbnb and Vrbo are geared towards holiday accommodations for stays lasting just a few days or up to a week.

In addition, furnished apartments are generally situated in buildings overseen by property management firms, as per Welsh’s statement. Consequently, they usually provide a higher level of uniformity regarding amenities and assistance compared to short-term rentals.

Welsh stated that even with these distinctions, she thinks the surge in popularity of short-term rental platforms has positively impacted the furnished apartment sector. According to her, these platforms have increased people’s comfort level with utilizing online reservation systems for such lodging options and encouraged them to opt for stay experiences in home-like settings.

"She mentioned that this shift has enabled their product to become more prominent since previously, visitors were unlikely to visit their site and reserve an extended one-month stay when they could easily do so for just a few days through a hotel’s webpage. The rise of platforms like Airbnb and Vrbo has encouraged travelers to embrace long-term stays without hesitation. Therefore, both Airbnb and Vrbo complement each other and drive the trend toward renting fully-furnished apartments as these services attract a broader audience with varied accommodation needs.”

The advantages of renting fully equipped apartments

Today, as remote work has grown substantially more prevalent compared to earlier times, numerous individuals can now perform their jobs virtually anywhere they choose. According to Chatzieleftheriou, the furnished rental apartments provide an option for people to reside in completely equipped and home-like settings, all while maintaining the ease of relocating effortlessly between different locations.

Unlike hotels, which offer a uniform set of features like regular cleaning and predefined conveniences leading to a standardized stay for guests, Welsh pointed out that fully equipped apartments deliver a setting akin to condominiums. This setup allows residents to enjoy a potentially customized experience tailored to their preferences.

He mentioned that securing these kinds of spots is simpler and quicker compared to applying for conventional rentals.

"For instance, in New York City, if you follow the conventional path, it might take multiple weeks just to have your application approved and additional time to purchase furniture. Therefore, none of these processes are particularly well-suited for someone relocating to NYC for a period as short as six months up to one or two years," he explained.

Moreover, fully equipped apartment rentals typically cost around 15% to 20% more. according to Apartments.com — Compared to traditional month-to-month rentals, they might end up being more economical over time. You save money by avoiding the expense of buying furniture or appliances, plus utilities, Wi-Fi, and public facilities are typically covered in your regular payment. Additionally, you won’t have to bear any maintenance expenses since that responsibility usually lies with the landlord.

Welsh advised, 'Go ahead and take the plunge. Give it a shot. What’s wonderful about this idea is its adaptability. You’re not obligated to commit for an extended period,' he stated.

Maddie McGay serves as the real estate correspondent for NorthJersey.com And The Record, which covers everything noteworthy about life in North Jersey. You can find her here. Instagram @maddiemcgay , on X @maddiemcgayy , and subscribe to her North Jersey Living Newsletter. Do you have a suggestion, trend, or outstanding home feature she should be aware of? Send an email to her at MMcGay@gannett.com .

The article initially appeared on NorthJersey.com. Prefer not to put down roots in just one spot? There's an increasing need for turnkey furnished flats.