When hotels replace homes

Some high-net-worth individuals have been known to take year-long residencies in hotels. An eye-watering amount of disposable income has likely been spent out of choice, rather than necessity. Extended stay hotels, which are designed for practicality as opposed to indulgence, are far betted suited to serving long-term living requirements – but the reality for families in DeKalb County, Georgia, reveal that extended stay accommodation has become a last-resort housing solution rather than a lifestyle preference.

A report from the Georgia State University has found that more than 4,600 people are currently living in extended stay hotels in DeKalb County. Compared to the county’s average monthly rent of $1,789, respondents are actually paying more to stay in this type of accommodation – on average, about $1,852 per month. It exposes a structural flaw in the housing system, where families able to meet monthly rental payments are denied permanent housing due to inflexible screening criteria and high upfront costs.

When asked about the barriers to securing permanent housing, 61 per cent cited not meeting screening criteria for income, 48 per cent said they could not afford a deposit, 36 per cent cited a low credit score, and 33 per cent cited previous evictions. Respondents could select more than one option for this question. 

Even more concerning is the reality that nearly 33 per cent of residents reported mould and nearly half (49 per cent) reported insects or rats. It is also estimated that around 1,635 children are living in extended stay hotels in DeKalb County, yet around 75 per cent are not receiving support measures under the McKinney-Vento Act, which gives children experiencing homelessness the right to transportation assistance and immediate school enrolment.

The injustice is hard to ignore. The conditions identified in this single county raise uncomfortable questions about how many other families and households are at risk of being missed from federal homelessness counts or local administrative systems. To put this into perspective, DeKalb County is one of more than 3,000 in the United States.

Some operators will find themselves at the intersection of hospitality, housing, and social policy, though often without the frameworks and safeguards in place to support long-term living demands. It highlights an opportunity for operators to work more closely with local authorities to develop support plans specific to these circumstances, and ensure residents are connected with vital organisations such as schools and non-profits. 

As report co-author Shannon Self-Brown, a university professor in the School of Public Health and co-lead of the Center on Health and Homelessness, said: “The extended stay hotel crisis will not resolve on its own and is likely to get worse without coordinated action.”

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