Features

Sean Baird

Higher interest rates, softening cap rates, and an uncertain insurance environment are making it difficult for many student housing buyers and sellers to get deals done.  It’s important to understand that the overall student housing industry is performing very well, with occupancies and rental rates continuing to rise over the past couple of years. However, macro-economic factors like interest rate hikes are putting downward pressure on pricing and making this a more difficult deal environment. To illustrate the impact of these factors, consider these statistics: U.S. student housing sales closed …

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Ofer-Ohad

The National Multifamily Housing Council’s 2021 White Paper, titled ‘The Future of U.S. Student Housing Demand,’ predicted steady demand and the continued growth of the student housing market, with an 8 percent increase from 8.5 million beds in 2020 to 9.2 million by 2031. While this demand for student housing is promising, the path to developing affordable, quality student housing is far from straightforward, due to a combination of volatility in financial markets and a constrained construction industry. Nevertheless, these headwinds present unique opportunities for universities, colleges, developers, and investors …

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NMHC

Las Vegas — Industry leaders from all over the country came together at the most recent National Multifamily Housing Council Student Housing Conference. The conference was held from October 17-19 at the MGM Grand Hotel & Casino in Las Vegas, Nevada and was designed to provide a deep dive and exchange of information into the business of student housing. This year, the College Student Mental Wellness Advocacy Coalition added a deeper focus to the overall student experience when it comes to addressing mental health. Shifting gears from top of mind industry data …

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Subtext-Korte

Gen Z students are prioritizing their own well-being during their college years, and developers are responding. In recent years, student housing developments have undergone a transformation, shifting from traditional dorms to hospitality-inspired environments. Innovative designs and curated services that underscore wellness and accommodate a wide variety of emotional and social needs are the ticket.  Upscale Amenities and Their Role in Creating a Holistic Wellness Experience Student housing developments have historically offered basic amenities and minimal comforts. However, the expectations of today’s Gen Z students have evolved. No matter the climate, …

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Lori-Ann-Dinkins

When it comes to student housing properties, creating a strong brand identity and implementing captivating interior design go hand in hand. These two elements work together seamlessly to provide a consistent and memorable experience for residents. But is branding and interior design a relevant conversation in this economic climate? The convenient answer is — yes. Students need a place to live at all times during the economic cycle, no matter what their financial circumstances. For most students who are going to stay in their general area, the price of rent …

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Haven-Apartments

It’s no secret that the investment sales market has been sluggish this year. But while sales volume is unquestionably slower, investors are still finding stabilized opportunities that are poised to deliver outsized yields in the near term, according to Timothy Bradley, founder of TSB Capital Advisors and principal with TSB Realty.  Most of the properties that are transacting can be found in Power Five university markets, or those that exhibit similar supply and demand metrics, notes Bradley. And the investors making these deals pencil tend to be experienced in the …

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Mark-Podgainy

Student housing market volatility stabilized somewhat in 2022, as more students returned to campuses for in-person classes and pre-leasing rates for the school year exceeded 96 percent across the top 200 academic institutions in the country, according to data from Yardi. The U.S. higher education market, however, is experiencing declining enrollment overall. This has been a consistent long-term trend and is likely to accelerate in part due to what has been described as the “enrollment cliff.” This dramatic drop in the college-age population is expected to begin in 2025 and …

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Kat Callender Student Housing Marketing

Competition for student renters grew heated in 2023, fueled by softening college enrollment and an influx of newly constructed student housing across Tier II cities. The slowed pace of leasing caught many owners by surprise, triggering an 11th-hour scramble to ramp up marketing. “A lot of student housing providers were not as full as they thought they would be this fall, with performance weighed down in the Tier II markets,” says Kat Callender, a student housing marketing expert at Conversion Logix. “Some properties were only 90 percent leased in July …

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Mike-Wommack

After several years of decline due to the pandemic and publicity over student loan debt, it appears college enrollment is stabilizing, which is good news for student housing investors. Even with the recent drop off in enrollment, the top 175 American universities are still able to house just 21.5 percent of their undergraduates on campus. This dearth in on-campus accommodations makes off-campus student housing one of the most in-demand asset classes in commercial real estate, creating a growth opportunity for investors, even against the backdrop of an unstable economy. Meanwhile, …

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Brad Hufford Dickson Furniture Reshoring

Supply-chain predicaments and rising costs forced many in the student housing industry into a holding pattern as the 2021–2023 global supply chain crisis took its toll. Materials and shipments were caught in limbo while properties and their students had to wait for deliveries on a drastically expanded timeline. Fortunately, those challenges have greatly subsided, according to most industry experts. Freight costs have fallen below their pre-pandemic rates, providing some relief for furniture manufacturers that rely on overseas shipments. However, savvy student housing experts are taking the present moment to review …

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