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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 …

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 …

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 …

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, …

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 …

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, …