Publications

- January 1, 2025: Vol. 37, Number 1

To read this full article you need to be subscribed to Institutional Real Estate Americas

Student housing offers resilient and reliable investments

by Elise Mackanych

In a tumultuous and unpredictable real estate market, student housing is one sector that remains steadfast, resilient and reliable. Despite economic declines and uncertain sociopolitical factors, this sector has proven to be stable in almost any condition.

When considering the possible success of a student housing opportunity, there are three major factors to consider: occupancy and preleasing metrics, rent growth correlation, and proximity and amenities.

“Occupancy for the 2024–2025 school year reached 94.5 percent, reflecting strong demand despite slower preleasing in some markets,” says Matthew Gorelik, CEO of Township Capital. “Schools like Illinois State and Virginia Tech, with over 99 percent occupancy, highlight the importance of stable enrollment and manageable supply.”

Enrollment increases are strongly correlated to rent growth. Sustained enrollment growth is crucial in predicting the success of a student housing investment. “Evaluating year

For reprint and licensing requests for this article, Click Here.

Forgot your username or password?