Investing in Student Housing

Monday, September 6, 2021

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As students return to in-class learning at colleges and universities across North America, the demand for off-campus housing is rising. Low vacancy rates continue to pose problems for students trying to find safe and affordable rental accommodations. 


As a result, investors and property owners are considering the financial opportunities available within the off-campus housing market.   


Before making an investment in student housing, interested parties should analyze the market that the rental accommodation(s) is located in. There are many situational factors to consider:


  • How many college or universities are in the surrounding area?
  • Are enrollment rates increasing or decreasing at these schools?
  • How much on-campus housing is available?
  • Are there restrictions regarding which students can live off-campus at these schools (do freshmen and sophomores have to live on-campus)?
  • What is the academic calendar for these schools (start and end dates for each semester)?
  • What is the leasing cycle like?


Other market factors to consider include:


  • What are the going rental rates?
  • How competitive is the rental market?
  • Is rental licensing required and are there related by-laws?


This information can help property owners and investors get a firm understanding of the demand and potential revenue available for the student housing market within the area.


SEE ALSO:  Students Make Great Tenants

The Team