Student housing investment prospects have risen significantly over the past nine years, with student housing now solidly established as its own sector in the investment community. It’s heartening to note that student housing is historically not correlated with downturns in the economy. Here are some things to know and look out for as you plan your investments now and shortly:
Preparing for 2020 recession?
While more than half of investors and investment advisors worry there will be an economic recession in the United States within the next 12 months, according to the fifth annual Advisor Authority survey, entitled “Safe Havens in an Uncertain World,” the good news is that enrollment historically increases in a recession. The idea is that when a recession hits, people are more motivated to get college degrees so they will be more likely to get a job.
Students will always need housing, and that’s why off-campus housing has historically been such a good investment option. With the geography around college campuses inherently limited, the supply has been relatively low, but demand has been constant. That’s potentially great news for investors: this low supply should keep demand strong. With a well-positioned property, you may be able to keep its full-year in, year out, plus the potential for cash flow.
The state of student housing
Today’s students want their housing to support a healthy, balanced lifestyle. They want access to collaborative study settings, easy connectivity to WIFI for homework and entertainment and package lockers to keep their deliveries safe until they can retrieve them.
So as 2020 approaches, it’s important for investors to be mindful of the priorities of today’s students. Beyond providing a comfortable living space, you want to deliver an unforgettable living experience. Profit from student housing investments is only sustainable as long as you are providing a fun place to live and a compelling living environment that’s friendly, safe and conducive to their studies.
Read the entire article in National Real Estate Investor magazine here.
