According to Berkadia’s latest U.S. Student Housing Pipeline Report, student housing continues to be a lucrative investment opportunity with impressive fundamentals. Fall enrollment at the top 175 universities has increased by 0.6% year-over-year and there has been a significant 150-basis-point rise in student housing occupancy near these schools compared to pre-pandemic levels.
Berkadia reports that effective rent growth among the top universities was at an impressive rate of 7.9% from August 2022 to August 2023, which is more than three times higher than the national average for market-rate apartments. The Rocky Mountain region saw the highest year-over-year rent growth at an astounding rate of11 .9%.
The report also predicts that new on-campus student housing supply through 2025 could reach its peak since2017 . Data on new housing supply across regions shows that Texas/Oklahoma had the highest annual change for2024 , with an increase of62 .1%.
Image: Allina La Jolla student housing near University of California-San Diego.
This strong data supports Berkadia’s statement that investing in student housing is a wise decision backed by solid fundamentals, making it an excellent investment vehicle for investors looking for long-term returns.
