Student Housing Trends Favorably for Rent Growth
Looking for a student housing bed this fall? You're probably going to be out of luck as the projects delivered in 2014 and, so far in 2015, have filled up as the fall semester started. That indicates opportunity growth as developers have about the same number of beds slated to deliver for the next school year as well, according to Axiometrics researcher Taylor Gunn.
About 63,000 off-campus beds came on line in 2014 and another 48,000 opened this year. Occupancy levels for these properties sits around 96%, which is up from a little more than 94% at the start of the fall 2014 semester.
Expect big deliveries next year with another 48,000 off-campus beds, as well as about 46k SF of on-campus beds ready for 2016.
Rent growth is on the rise, too, trending upward to 3% or higher for multiple properties this fall. [NREI]