NAICS 7213

Rooming & Boarding Houses

Rooming and boarding houses (NAICS 7213): affordable lodging for extended stays. Industry overview, trends, and market insights for business professionals.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 7213 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
7,503
US Census CBP · 2023 · NAICS 2017
Establishments
1,589
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$248.9M
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$33,178
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$2.0B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Rooming and boarding houses (NAICS 7213) are establishments that provide temporary or longer-term lodging accommodations, typically on a weekly, monthly, or seasonal basis, often with or without meals included. These properties differ from hotels and motels by offering more affordable, residential-style housing arrangements that cater to individuals, families, and transient workers seeking extended stays or permanent rooms in shared facilities. This segment serves diverse populations including low-income residents, students, migrant workers, and individuals transitioning between permanent housing situations, functioning as an important component of the affordable housing and short-term rental landscape.

Rooming and boarding houses operate across urban, suburban, and rural markets, with significant presence in college towns, industrial areas, and major metropolitan regions. The industry encompasses a wide range of property types, from converted residential buildings to purpose-built facilities, with varying amenities and service levels. Unlike full-service hotels, these establishments typically operate with minimal staffing and may offer shared common areas, kitchens, or laundry facilities rather than individual in-room amenities, allowing them to maintain lower nightly or monthly rates while generating consistent revenue streams from long-term occupants.

The industry plays a crucial economic and social role by providing stable, affordable lodging options in tight housing markets and addressing the needs of populations underserved by traditional hospitality. Economic viability depends on consistent occupancy rates, property maintenance efficiency, and community integration. Recent years have seen increased competition from online short-term rental platforms, changing demographics of occupants, and evolving regulatory frameworks addressing housing standards and tenant protections.

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Industry Trends

01

Increased pressure from short-term rental platforms and online booking services is reshaping traditional rooming and boarding house business models, requiring property owners to modernize digital presence and compete on convenience and online visibility.

02

Growing demand for affordable, flexible housing services driven by rising residential rents and housing costs in metropolitan areas is strengthening market fundamentals for reasonably-priced boarding accommodations.

03

Stricter local regulations and zoning restrictions on short-term rentals and boarding houses in major cities are creating compliance challenges while potentially protecting traditional boarding house operators from unfair competition.

04

Rising focus on housing stability and social services integration is leading some boarding house operators to partner with nonprofits and government agencies to address homelessness and provide supportive housing with wraparound services.

05

Modernization investments in property amenities, including private bathrooms, high-speed internet, and improved common spaces, are becoming necessary to attract diverse tenant demographics and maintain competitive positioning.

Specialty Reports Available on Request

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Frequently Asked Questions

What is NAICS 7213? ▾
NAICS 7213 classifies rooming and boarding houses—establishments primarily engaged in providing furnished rooms and sometimes board for guests on a weekly, monthly, or longer-term basis. These properties typically charge lower rates than hotels and may include shared facilities and meals as part of the arrangement.
How do rooming and boarding houses differ from hotels? ▾
Rooming and boarding houses emphasize longer-term residential stays at lower price points, with fewer staffed amenities and often shared common spaces, compared to hotels that primarily serve short-term guests with extensive individual room services. Boarding houses typically generate revenue through weekly or monthly rates rather than nightly bookings, creating different operational and financial models.
Who are the primary tenants in rooming and boarding houses? ▾
Primary occupants include low-to-moderate income residents, students, migrant and seasonal workers, individuals experiencing housing instability, and long-term visitors seeking affordable temporary housing. Many properties also serve individuals transitioning between permanent housing situations or those requiring short-term accommodations during employment assignments.
What regulatory challenges do boarding house operators face? ▾
Operators must navigate local zoning laws, building codes, fire safety standards, health and sanitation regulations, and increasingly, tenant protection laws. Many jurisdictions have strengthened standards for boarding houses, requiring compliance with occupancy limits, habitability standards, and licensing requirements that increase operational complexity.
How are digital platforms impacting the rooming and boarding house industry? ▾
Online rental platforms and booking services have intensified competition for temporary and extended-stay guests, prompting traditional boarding house operators to establish online presence, improve digital booking capabilities, and enhance property amenities. This shift requires investment in technology and marketing to remain competitive with alternative accommodation options.

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