{"id":17965,"date":"2017-05-31T05:00:47","date_gmt":"2017-05-31T12:00:47","guid":{"rendered":"http:\/\/www.yardi.com\/blog\/?p=17965"},"modified":"2026-02-22T15:40:10","modified_gmt":"2026-02-22T23:40:10","slug":"student-housing-3","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/student-housing-3\/","title":{"rendered":"Student Housing"},"content":{"rendered":"<p>Just as industry experts thought the interest in student housing may begin to plateau, the prospects for growth are shining brighter.<\/p>\n<p>Investors made $1.1 billion in student housing property transactions in the first quarter of 2017, <a href=\"https:\/\/www.cbre.us\/research-and-reports\/us-research\">reports<\/a> CRBE. This figure excludes portfolio deals, which held their own: Q1 ended with the sale of a $1.6 billion portfolio, which is a great start to the year.<\/p>\n<p>Local and foreign investors are showing confidence in the student housing sector. Student housing is hist<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-17966\" src=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg\" alt=\"Student Housing Showing Steam\" width=\"490\" height=\"327\" srcset=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg 1000w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?resize=768,512 768w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?w=400 400w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?w=500 500w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?w=600 600w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?w=720 720w, https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/05\/Student-Housing-Showing-Steam.jpg?w=800 800w\" sizes=\"auto, (max-width: 490px) 100vw, 490px\" \/>orically more stable throughout economic fluctuations. There are fewer enrollment surges during times of prosperity and fewer dips in enrollment during challenging times, reports TH Real Estate.<\/p>\n<p><a href=\"https:\/\/www.threalestate.com\/about-us\/our-people\/thomas-park\" target=\"_blank\" rel=\"noopener noreferrer\">Tom Park<\/a>, Senior Director, Strategy &amp; Research at TH Real Estate, explains:\u00a0&#8220;Rental growth in the sector has proven to be less volatile than that of conventional apartments \u2013 partially as a result of the sector being less economically sensitive. Results for some of the largest players in the market show rental growth volatility, as indicated by the standard deviation, was lower than conventional apartments and capital expenditures are in line with those of conventional apartment.&#8221;<\/p>\n<p>College enrollments have continued to rise since 2008. Most notably, 2014 ushered in $3.5 billion in sales, topped in 2015 with $6 billion and $10 billion in 2016. The consistent growth contributes to the perception that student housing is a recession-resistance sector.<\/p>\n<p>Enrollment in and applications for post-graduate programs are also rising. TH Real Estate estimates that about 3 million students enrolled in post-graduated programs in fall 2016. That figure has consistently risen since 2010 when enrollments maxed at about 2.2 million. Post-graduate studies will extend the demand for student housing<\/p>\n<p>Though enrollments continue to grow, state budgets for education are shrinking. Public colleges and universities seek out institutional investors and developers for support.\u00a0 The latter readily respond to the call.<\/p>\n<p>\u201cInterest in student housing has been growing steadily, as more investors look towards less traditional asset classes within commercial real estate. Much more institutional capital has entered the student housing space as of late,\u201d Ethan Vaisman, real estate economist with research firm CoStar, said to NREI in a <u>recent <\/u><a href=\"http:\/\/www.nreionline.com\/student-housing\/student-housing-sales-outperform-rest-market?NL=NREI-21&amp;Issue=NREI-21_20170508_NREI-21_587&amp;sfvc4enews=42&amp;cl=article_3&amp;utm_rid=CPG09000010855468&amp;utm_campaign=9383&amp;utm_medium=email&amp;elq2=ec46305c9c40401794c48d857a2ea014\" target=\"_blank\" rel=\"noopener noreferrer\">interview<\/a>.<\/p>\n<p><a href=\"https:\/\/www.threalestate.com\/news-and-views\/articles\/17-03-28-think-us-student-housing\" target=\"_blank\" rel=\"noopener noreferrer\">Market analysis<\/a> by TH Real Estate forecasts that 2017 will be on par with last year\u2019s success, which ended with nearly $10 billion in transactions by institutional investors and developers. Bids for assets are at a steady clip with no signs of slowing down.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just as industry experts thought the interest in student housing may begin to plateau, the prospects for growth are shining brighter. Investors made $1.1 billion in student housing property transactions in the first quarter of 2017, reports CRBE. This figure excludes portfolio deals, which held their own: Q1 ended with the sale of a $1.6 [&hellip;]<\/p>\n","protected":false},"author":440,"featured_media":17966,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3243,4,3372],"tags":[1215,88,72,43],"class_list":["post-17965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-management","category-news","category-student-housing","tag-college-housing","tag-education","tag-investment","tag-student-housing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Yardi Blog<\/title>\n<meta name=\"description\" content=\"Just as industry experts thought the interest in student housing may begin to plateau, the prospects for growth are shining brighter. 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