U.S. universities are experiencing heightened demand for student housing as they cope with enrollment levels that have risen nearly 40 percent in the past decade.
The National Multi Housing Council’s (NMHC) National Student Housing Council (NSHC) recently reported that on-campus housing is insufficient nationwide. This trend has been fed partly by the number of Americans seeking to further their education during a slow job market. The number of students living on-campus reportedly rose 21.4 percent.
“The tremendous size of Generation Y, combined with economic uncertainty, have pushed enrollment to new heights over the past decade,” said Jim Arbury, NMHC’s vice president of Student Housing. “This has put tremendous pressure on universities across the country as they attempt to keep up with the demand for on-campus living, offering a new opportunity for student housing firms.”
That opportunity may extend to investors in single-family rental homes, as well as apartments and other properties which are typically considered the standard for students. Property management companies and owners may wish to investigate the housing preferences of students in their area and the policies of schools to determine whether they have a chance to expand into this space.
Schools in several states have seen major surges in enrollment and are experiencing the greatest shortages of housing as a result. A few have maintained residency levels, however, and likely do not present an opportunity to investors at the moment.
Category: Rental Market News