Student Housing Emerges as Newest Niche Market
An emerging property market is being seen as an alternative equal opportunity area to address concerns in the commercial real estate market.
Student housing isn't only for on-campus housing, according to an article on multifamilyinsiders.com. As of today, student housing being considered as a niche market is slowly phasing out as it is attracting investment potential. More students have been renting properties from local apartments as well as independent landlords, but the growth of enrolled students have piqued investors to see student housing as no longer a niche market. US and Canada have experienced this growing housing trend as of last year alone.
Bisnow.com recently featured an interview of Eddie Hull of UMass Amherst regarding Gen Z-ers requesting specific upgrades for on-campus student housing. He says, "Increasingly, students want more private bathrooms, kitchens and wireless Internet access everywhere for their devices. They prefer to live in apartment style residences rather than traditional dorms. When that housing is on campus, research shows students tend to get better grades and are more likely to graduate."
Still in the same article, the educational institution is banking on a 1.2$ billion planned capital to facilitate the campus housing upgrades. The university currently has a population of about 30,000 students with 13,000 housed on campus grounds. Some of the campus' other projects or are set to begin include the "historic South College renovation and expansion (above); the new Integrative Learning Center; the $101.8M Physical Sciences Building for research; the $62M addition to the Isenberg School of Management; and the exciting $52M Design Building, which uses engineered lumber to create a highly sustainable home for the study and practice of architecture, landscape architecture and construction technology. The building is more costly to build than steel or traditional wood framing but has a smaller carbon footprint," continued Mr. Hull.
More on the story here.