Five Reasons to Bet on College Kids
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Student housing may be considered niche multifamily, but the folks at EdR think they’ve found five good reasons to put their money in university towns.
1) The National Center for Education Statistics cites a 1.1% average annual enrollment growth through 2021.
2) The population of 18- to 24-year-olds is leveling. They've got to find something to do in those six years. (They can't spend all their time at Arcade Fire concerts.)
3) The percentage of high school graduates attending college continues to increase from 47% in 1980 to 63% in 2010, according to an NCES report.
4) Tbe average length of stay has increased to more than five years. (More time to perfect playing quarters.)
5) The knowledge-based economy continues to drive enrollment. Among Millennials ages 25 to 32, earnings for college-degree holders are $17,500 greater than for those with high school diplomas only, according to US News. (Please ignore the success of college dropouts like Steve Jobs, Mark Zuckerberg, Bill Gates, and Harry Houdini.)