STUDENT HOUSING OPPORTUNITY

Research indicates that current trends in student housing provide a long-term investment opportunity that will generate significant cash flow and capital appreciation.

In recent years, universities and colleges have experienced a significant increase in their enrollment. Today, there are nearly 58 million children enrolled in grades 1-12, more than at any other time in U.S. history, and representing nearly 22% of the entire population. In effect, these children, known as echo boomers, represent a second baby boom to arrive at college age over the next 12 years. Not only will there be more children of college age than ever before, more of them will be going to college than at any time previously. 

The significant increases in college enrollment, however, have not been matched by a similar increase in on-campus student housing developments. This increased school population arrives at college at the very same time that state budgets are being squeezed. And, for most institutions, hiring more faculty members and putting up new academic buildings takes precedence over constructing new dormitories. The lack of new university-sponsored housing has resulted in a strong demand for off-campus student housing.

Additionally, many current college students have grown up in large, contemporary homes and have become accustomed to privacy, convenience and a pleasing environment. On-campus housing and much of the older off-campus housing is poorly designed to meet the increasingly discriminating desires and needs of college students. The private sector has responded to the new challenge in housing in two ways: on-campus public/private ventures and off-campus apartment communities. However, new supply simply is inadequate to satisfy the demand resulting from the demographic trend stated above.