Why to Invest in Student Housing during 2023 - Part 1

Monday, May 1, 2023

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There continues to be a rental housing shortage throughout North America, especially for students. During the pandemic, many students were required to study online, but have now returned to regular on-campus classes. This has created an increased need for off-campus housing in both Canada and the USA. Many of our partner schools have expressed an urgency for increased housing options near their campuses. 

 

So why invest in student housing?

 

There are a variety of reasons why an investment in student housing would be beneficial. 

 

International Student Population Growth:

 

Student housing is a growing niche with a promising demand in a less volatile market for both Canada and the United States.

 

According to the National Statistics Office of Canada, in 2021, 621,565 international students held study permits intended for different study levels. Compared to six years ago, it has now nearly doubled. Using data in 1950, the number of international students has increased steadily, with relatively short dips in the early 1970s, the middle of the 2000s, and in 2020 due to COVID-19.

 

These findings also hold true in the United States. Studies show the number of international students has nearly doubled since 2004 to 948, 519 students.

 

A Perfect Landlord’s Market:

 

Many regions of Canada and the United States represent a ‘Perfect Landlord’s Market’. This is characterized by low vacancy rates, steadily increasing rental rates, increased profits, and little to no difficulty finding tenants. Many landlords have experienced an increase in tenant inquiries during a shorter advertising duration, in comparison to previous years. Landlords have also experienced reduced negotiation with potential tenants regarding rental rates and additional perks or services included.

 

Perks for Parents:

 

We previously wrote a blog ‘Parents: Have You Considered Entering the Student Housing Rental Market’, which outlined multiple perks for parents considering to enter the rental market while their child is away at college or university. These benefits included cheaper accommodations, reduced expenses, return on investment, property supervision, and more. 

 

Part 2 - continued next week!

 

SEE ALSO:  Why to Invest in Student Housing during 2023 - Part 2



The Places4Students.com Team