Market Trends of US Student Accommodation Industry
Enrolment of Students in the US
The institutional student housing market in the US has been a steady source of demand for real estate investors, with steady enrollment in four-year public universities throughout the business cycle. However, as the millennial generation ages, the college-aged population (aged 18 to 24) has declined, impacting enrollment growth. However, over a longer time frame - from 2020 to 2031 - the US expects enrolment in postsecondary schools to grow by an average of 1.1% annually. Even in a more challenging demographic environment, opportunities for the discerning investor will continue to be there.
Urbanization Boosting the Market
The rapid development of cities has led to the development of higher education institutions like universities and colleges in urban areas. This has led to an increase in student accommodation demand in urban areas. Students are looking for high-quality student accommodation that offers modern amenities, safety, and amenities like a gymnasium, communal areas, study lounges, etc. The promise of stable rental income and high occupancy rate has attracted significant investment in the student accommodation sector by institutional investors and real estate developers.
