Affordable housing is a major need for the cohort, which faces a higher student loan burden. But rising construction costs are slowing projects, according to the ratings agency.
Dive Brief:
- Building affordable housing for graduate students is becoming increasingly important for universities — but inflation, interest rates and other challenges are likely to constrain projects in the short term, according to a July report from Moody’s.
- Institutions have looked to fill the need through partnerships with private developers, analysts with the ratings agency said. At the same time, they point out that such projects are riskier than typical college housing given the narrower market, higher price sensitivity among graduate students and the flexibility they have to live off-campus.
- With the supply constrained for now and student housing vacancy historically low, Moody’s estimates rents will grow 4.4% annually over the next three years.
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