Rooming and Boarding Houses in the US

Stark imbalances: no room to move

A number of factors are likely to mount pressure on rental rates, far in excess of inflation and any increase in wages and benefits. This may act to further exacerbate existing low rental accommodation and access rates, while forecast low economic growth is expected to put further stress on demand for low income housing. Falling real residential and general property prices may help to take some of the pressure off the industry, however supply and demand imbalances will continue to hinder this industry.

The industry comprises establishments primarily engaged in operating rooming and boarding houses and similar facilities, such as fraternity houses, sorority houses, off-campus dormitories, residential clubs and workers' camps. These establishments provide temporary or longer-term accommodation which, for the period of occupancy, may serve as a principal residence. These establishments also may provide complementary services, such as housekeeping, meals and laundry services. In more detail, a rooming house is any building in which renters occupy single rooms and share kitchens, bathrooms and common areas. The building may be a converted single-family house, a converted hotel or hostel or a purpose-built structure. Rooming houses may have as little as three rooms to rent to more than a hundred. Boarding houses offer tenants food and other services in addition to accommodation. Major tenants of rooming and boarding houses include: people on social security, people on minimum wage jobs, new immigrants, farm workers, refugees, elderly on low income, the disabled, students and people with alcohol or other substance dependency or mental health problems. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.