September 1st, 2016
Multi-Family Trend: The Influx of Student Housing
Privately owned housing for students is a major part of the real estate sector today. The strength has been clearly demonstrated by performance metrics. According to the senior vice president of Axiometrics, rent growth is likely to remain stable in the next five years; however, occupants will continue to be above 95 percent as the nationwide enrollment rises.
In 2016, the housing rent for students was up by $618 in the fall. This was $14 above the rate in 2015. Therefore, there is a $2.3 increase compared to 2015. Naturally, the rent remains highest to all privately owned properties in proximity to campuses.
In the fall of 2016, there will be a new supply of beds that will be the third highest for privately owned properties which houses students. Across the country, there will be 47,700 students expected to rent privately owned properties based on an update by Axiometrics focusing on student housing performance in the market.
According to the update, there will be the following figures expected in the following states:
Texas A&M: 1850
Louisiana State: 1440
South Carolina: 1300
South Florida: 1168
The markets that have the seven in the top ten are either southwest or southeast. Arkansas is the first with 2319. Therefore, that is the number of new beds expected by the 2016 fall. There are similar numbers of beds in the other states listed above which total to 47,700. As such, the market is not likely to fall anytime soon according to Jay Denton, the vice president of Axiometrics.