Head of the class: Putting student housing at the center of mixed-use communities
Over the past several years, private and institutional investors increasingly have found student housing to be a lucrative endeavor. Because of the continuous demand from students for residences within walking distance of university campuses, these developments seldom face the same risk of oversupply that multifamily experiences in some markets as the real estate cycle matures.
This sustained need for quality housing near universities is responsible for its appeal. According to the National Center for Education Statistics, between 2004 and 2014, fall enrollment at degree-granting postsecondary institutions increased 17 percent, from 17.3 million to 20.2 million, and the NCES has projected a 13 percent increase for students under age 25, and an 18 percent increase for students age 25 and over, from 2014 to 2025.
Based on the relative stability the asset class presents, it has attracted both institutional capital sources and developers, as well as those taking their firs