According to TH Real Estate’s latest research report, THINK U.S.: Student Housing, institutional interest and investment in the sector is growing and totaled approximately $9 billion in 2016. The report examines the favorable demographic trends that underpin demand, as well as strategies for success in the sector.

The report finds millennials — those born between 1981 and 1997 — are pursuing college and post-graduate degrees in record numbers, creating a huge demand for student housing. These students are seeking custom-designed complexes, with private bedrooms and bathrooms, as well as high-end amenities such as swimming pools, fitness centers and state-of-the-art Internet connectivity. In the United States, however, this type of stock represents the exception rather than the rule, as the majority of existing stock is older and located a significant distance from campus. Astute investors are looking for opportunities to capitalize on this supply/demand gap by