Image by Sergio Goncalves Chicago via Flickr.
In the last decade, student housing has risen the ranks of investment popularity from necessary evil to attractive opportunity. Overcrowding in university dorms and expensive on-campus living costs have helped boost demand for off-campus housing options. Student housing development has caught the attention of investors and developers because despite the high turnover, student housing is resilient, as it proved during the economic downturn.
Succeeding in student housing, however, takes work. The demographic has distinctly different wants and needs, but the stable increase in demand makes it a worthwhile investment. Here are some things to keep in mind as you navigate the world of student housing.
Not all students can afford Class A properties.
While the students who can afford it will shop for units with cool amenities, there are also plenty of students who choose off-campus housing as an alternative to expensive on-campus living. In general, the student housing pipeline leans towards luxury Class A properties, but don’t forget about the students on a budget. Affordable, basic units address the needs of middle and lower socioeconomic students, an important demographic – especially as tuition costs rise.
It’s all about location.
Even the largest, most luxurious apartment community located a mile from campus won’t have the leverage to charge as much – and have as low of a vacancy rate – as a class B property located right across the street from campus. In the student housing market, location is the king. Remember that many students don’t have cars and get around by walking or biking. A great location insulates you from potential overheating in the market, and will also give you a leg up over the competition.
Join the amenities race.
Student renters are tech-savvy and environmentally conscious. While you don’t need to go the extra mile and offer <a class="colorbox" …read more