The overall sentiment remains positive, with a few caveats. Industry leaders share their thoughts in the last installment of our outlook series.
Student housing remains one of the most resilient asset types in real estate, despite uncertainty in the capital markets and high construction costs posing challenges to developers and investors alike.
Preleasing remained strong—reaching 94.5 percent—with 50 institutions out of the 200 that Yardi monitors hitting 99 percent occupancy as of September, according to a national report. Southern markets continued to be the most sought-after for development, with the University of Tennessee and Florida State University having the largest pipeline under construction: 3,371 and 2,887 beds, respectively.
“Power 4 markets, flagship public universities and the most highly regarded academic institutions continue to see a consolidation in both enrollment growth and demand for purpose-built student accommodation surrounding the schools,” said Newmark Vice Chairman & Head of Student Housing Ryan Lang.
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