FOR Owners

Managing Inventory Saturation in a Market

How Texas Corporate Homes carefully manages inventory levels to prevent market saturation while ensuring strong demand for our properties.

Overview

Texas Corporate Homes uses best-in-class analytics, proprietary insurance claim demand insights, and a deep understanding of competitive supply and demand dynamics to set and manage inventory levels in our markets. Our goal is to ensure optimal performance for property owners in our mid-term housing program by strategically balancing supply with demand.

Guiding Principles

Maximizing Customer Performance

Our primary focus is maximizing performance and, ultimately, cash flow for our property owners. Just as we optimize pricing and occupancy, we carefully manage inventory levels to prevent market saturation while ensuring strong demand for our properties.

Using Data-Driven Insights to Match Supply With Demand

TCH relies on the same best-in-class research and analytics tools that commercial real estate developers use to determine how many properties a market can support. We assess multiple factors to make data-driven inventory decisions, including:

  • Number of owner-occupied households within a 5-mile radius – This helps predict the volume of insurance claims in a given area. Since we have established partnerships with top placement companies, we capture a significant share of these temporary housing opportunities.
  • Historical insurance claim trends – For example, Collin County has 431,746 households, with 6.9% experiencing property damage claims each year. Of those, 55% involve freeze, water damage, or fire, which frequently result in displacement and the need for temporary housing.
  • Household income and family size – These demographic factors help us gauge demand for fully furnished mid-term housing.
  • Current housing supply – We analyze our existing TCH inventory along with other mid-term rental options to determine market competitiveness.
  • Growth drivers in the area – Population growth, new construction, and increasing demand in surrounding areas all impact mid-term rental needs.
  • New construction trends and housing product types – The type of new housing developments in an area can affect rental demand and competition.

By leveraging these insights, TCH ensures that our inventory levels align with expected demand, preventing oversupply while maintaining a steady stream of bookings.

A Rising Tide Lifts All Boats

With 45+ commercial partners, including national insurance and corporate housing providers, our network reach extends across multiple markets. The more properties we manage, the stronger our position as a “one-stop shop” for mid-term housing. This network effect boosts overall demand and bookings for all TCH properties.

The Law of Large Numbers

In major Texas markets like DFW, Houston, and Austin, 5-10% of homeowners file insurance claims annually, with 20-25% of those requiring temporary housing. This means that 1-2.5% of all owner-occupied households need mid-term rentals each year.

While these trends hold across large property datasets, claim volumes can fluctuate significantly in smaller samples. Over time, TCH homes maintain an average occupancy of 80%, but short-term dips are normal.

Attempting to draw conclusions from a small sample of properties in a short time frame can be misleading. Short-term occupancy variations are expected in mid-term rentals, particularly in insurance placements and corporate housing. We understand this can be frustrating, but it's the nature of the industry.

Winning Market Share in a Competitive Landscape

Since insurance claims occur unpredictably in any given area, TCH focuses on winning as many placement opportunities as possible. Thanks to our partnerships with top placement companies, we compete for nearly every insurance housing placement in our markets.

However, guest preference ultimately determines winning a booking, and losing even one booking can make a significant difference. For small portfolios, a single lost tenant could shift annual occupancy from 90% to 60%.

This is why we emphasize multi-year performance analysis rather than short-term fluctuations. Our data-driven approach ensures that inventory levels are optimized for long-term success, leading to stronger bookings and revenue for our property owners.