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Student Housing – Is It The Next Big Asset Class For Real Estate Investors?


If you have been fishing into the world of real estate investment, there are certainly ways to go about it. For an investor, there are a plethora of housing options such as leasing, renting, service apartments or even list a spare room on Airbnb. But there is another niche real estate market that has been left untapped.

Benefits of student housing facilities for students

  • A vibrant and dynamic residential community that's close to classes and campus activities. Many programs and activities support academic and personal development goals
  • Learning to live in an environment that promotes community, personal growth, and respect
  • Help develop career critical leadership skills

How student housing benefits the Real Estate Industry

1) Full occupancy is typical for student housing – A student housing will ensure full occupancy throughout the year as more and more students are enrolling in higher studies.

2) Ability to increase rents – The students show up regardless of local unemployment or interest rate levels, and they pay the going rate since they must live somewhere besides adding roommates can keep even increased rents affordable.

3) Growth – High demand by the students for accommodation will lead to a growth of real estate sector invariably providing the opportunity for investors to invest more.

4) Expansion – Once the niche market of real estate is identified, an investor will focus on becoming an expert in the sector. This gives the investor an idea of what's driving the target market currently, what risks are involved, and most importantly where the market is headed in the short and long terms. 

5) Profitability – While making an investment in residential properties for student housing, location is often the biggest factor in appreciation. As the neighborhood around a home evolves; adding bus routes, restaurants, shopping centers, playgrounds and so on, the value climbs. 

6) Branding – A well-maintained property, fully occupied and enjoying profitability, enjoys the benefits of almost free branding as technology these days plays a key role. Information via social media tools flows quicker than word-of-mouth and save from expensive advertisements in the media.

7) Recession proof – Unlike the larger rental market which is subject to economic swings, student housing is recession-resistant, and may well be practically recession proof. 

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