Forget “Animal House,” today’s student housing is all about luxury

Miami /
Sep.September 06, 2016 10:30 AM
 

From the New York website: A laundry list of luxury amenities isn’t just for South Florida’s new construction towers. College students are also getting the hotel suite treatment.

Stainless steel appliances, hardwood floors, en suite bathrooms and in-unit washer/dryers are fast becoming standard at large public universities across the country, according CNBC.

Developers are investing in privately owned student housing and upping the ante on amenities, resulting in approximately 47,700 new beds in the pipeling for this fall semester. Universities in the Southeast are the primary target, according to Axiometrics, an apartment research firm.

“Privately owned student housing is quickly becoming an integral sector in real estate, and performance metrics demonstrate its strength,” Jay Denton, senior vice president of analytics at the firm, told CNBC. “Axiometrics forecasts rent growth to remain strong over the next five years and occupancy to stay above 95 percent, as enrollment continues to rise nationwide.”

As enrollment strengthens at state universities, housing has become increasingly scarce.

“The interest really started two or three years ago. A lot of the capital — institutional investors — needed to be educated on the space itself and what it meant to be in student housing. We had to do a lot of convincing that it wasn’t all ‘Animal House’ structures, but actually really stable cash flow properties,” J.J. Smith, chief operating officer of CA Student Living, told CNBC. “Now that we have educated the institutional world, we’re seeing a lot of capital interested in these properties.” [CNBC]Christopher Cameron


Related Articles

arrow_forward_ios
Brian Tuttle wins approval for 205 single-family home project in Parkland
Brian Tuttle wins approval for 205 single-family home project in Parkland
Brian Tuttle wins approval for 205 single-family home project in Parkland
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
Knock expands home lending program into South Florida 
Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley
Baptist, Belmont gain approval for luxury senior living in Coral Gables
Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)
Sunrise affordable senior housing facility sells for $30M
Sunrise affordable senior housing facility sells for $30M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...