Why 2016 Is The Year For Student Housing
The National Center for Education Statistics expects enrollment rates to grow in 2016, which will boost demand for student housing, which is looking more like Class-A luxury every day.
Low interest rates and newfound political support for post-secondary education will send rents from 3% to 6%, says Stonemont Financial Group VP of capital markets Brice Willis, reports GlobeSt.
2015 was a strong year for student housing. According to Colliers, the first half alone saw a total of $1.4B in transaction volume, a 176% surge from 2014. (The sector's booming globally, as well, with the UK seeing a record $8B for the year, the Financial Times reported.)
To break into the red-hot student housing market, Brice says, investors should partner with trusted professionals and educate themselves about on-campus housing options and living requirements.
"It’s important to understand the student community and be able to assess what market needs are being met and which ones are not," Brice says. [GS]
