Demand for Student Housing Assets About to Increase


college housingInvestors have already acquired a tremendous volume of student housing properties this year, but the busy buying season for student housing is just getting started.

“It’s frothy and it’s active,” says Dorothy Jackman, managing director of student housing services for real estate services firm Colliers International.

The bidding for student housing properties seems likely to get more intense. Investors usually trade the most student housing properties in the fall, after the results of the fall leasing season are in. This year, early results look very good: occupancy rates are on track to meet or even exceed the high levels set last year as the market easily absorbs the new student housing beds that get delivered.

Investors in student housing have been very busy during this spring and early summer. They bought $8.4 billion in student housing properties over the 12 months ending in the second quarter, according to data from New York City-based research firm Real Capital Analytics (RCA). That’s a sizeable increase from $5.4 million the year before. But the big surprise is that most of those sales happened after January 1. As of August, investors bought $5.7 billion in student housing properties in 2016, up from $3.7 billion over the same period in 2015.


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