After a record-shattering 2022, student housing is at the top of the list for smart investments.
Investors spent $18.9 billion last year on this type of housing, according to data from commercial real estate firm JLL. Experts predict that 2023 may not break any records, but this year will still have a strong showing.
This is the result of high demand and limited supply. Despite a minimal 0.5% decrease in overall college enrollment from spring 2022 to spring 2023 (continuing a decline since 2021), the National Center for Education Statistics projects that undergraduate enrollment will grow by 8% between 2020 and 2030, reaching 17.1 million students.
At the same time, students across the country are reporting long waitlists for on-campus housing, prompting them to explore other affordable housing options. Some prefer apartments, while groups of roommates often enjoy the space and amenities of single-family rentals.*
“I think all of us here feel pretty good about both 2023 and 2024, and 2024 and 2025 and beyond,” says David Rose, chief investment officer of Student Living CA Ventures. “It is an interesting time to start thinking about adding student housing to your portfolio.”
*Considering student rentals? PayProp's powerful payment automation makes it easy to invoice and collect rent from several tenants on one property.
More student housing headlines
Orlando leads state in off-campus student housing projects – Orlando Sentinel
In California, desperate college students compete for spots in trailer park – The Wall Street Journal
The next surprising fractional ownership trend: student housing – Propmodo
