We have seen sharp upticks in student housing opportunities, such as high-end apartment complexes situated near major universities. Is this still a potential growth sector as it has been, or has the market for such housing bottomed out?
Answers
This has been a trend in development and investing in a niche area of multi-family apartments for some time, and I expect this will continue until the demand has been met. Private provision of student housing, as opposed to housing provided by universities on campus, is a growing trend that allows universities to grow their student body without the expense or burden of doing it themselves, as they once did in most cases. Some markets are more mature than others and the demand in that market may be becoming close to saturated. Others are far behind, so understanding markets, supply and demand and what rents are in those markets is important in distinguishing where to invest and in making investment decisions. However, it seems this sector is here to stay for the long run and those going in early in the right places with a good operating platform have done extremely well.
Still potential for growth.