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What Makes Student Housing The Riskiest Multifamily Investment?


What could be risky about relying on college kids to fill your revenue streams? A lot, it turns out.

A survey by Integra Realty Resources says that high-interest loans—21 bps higher than primary location—for student housing makes it the riskiest of multifamily investments.


Survey results show loans for multifamily primary locations financed at 244 bps, Secondary at 253 bps; and student housing way up at 265 bps.

The difference in risk persists across the loan-to-value range, but it’s highest between 50% and 60% LTV, where student housing tops primary locations by 28 bps.

Meanwhile, developers are going all out to create some of the sexiest student cribs yet—giving dorm life a whole new meaning.