This fall, millions of college students headed back to school, and along with them came an economic tailwind for local university communities. But long before these Gen Zs and Gen Alphas flooded the country’s numerous college towns, investors in purpose-built student housing communities were making plans to accommodate these students.

The creation of an institutional market for purpose-built student housing is a relatively new evolution in real estate, but dynamics of high demand and low supply growth have made it highly attractive to institutional capital. Today’s student housing segment is similar to the “lifestyle” multifamily housing sector, where the driving forces in rental choice are product quality, amenities and location. So, many multifamily investors are keen to participate, but there is a crucial distinction to make. Even if an operator has had successful multifamily properties, student housing is an entirely different product and requires unique strategie