A large number of big investors continue to enjoy higher return on investment in student housing in comparison to multifamily or office properties. With university numbers increasing across the United States, so is the demand for student housing. To meet these growing demands, companies like Nelson Partners have also emerged, which specializes in developing, acquiring, and managing quality purpose-built student housing assets. Today, most students chose privately rented accommodation over other options, which ensure a consistently high demand for such properties.
Taking a leap to invest in real estate is a good decision for any investor, as it would help them to enjoy high returns. While options for real estate investment are multiple, student housing is especially considered to be an excellent asset class that has proven to be resilient to economic fluctuations. Traditionally, many investors used to consider student housing investments a scary prospect, with the possibilities of students thrashing and thought it is better to explore the typical residential real estate domain instead. But the scenario has changed quite a bit over the years. With the emergence of real estate management agencies like Nelson Partners, people are able to rent out student accommodations without worrying about dealing with unruly tenants. These agencies will be the ones to handle them.
The reasons to invest in student housing are many. Here are some of the major ones:
- Even though the tuition fees of many colleges across the world have increased substantially over the years, so has the demand for undergraduate and graduate degrees. Student enrollment is rising continuously and is expected to keep increasing in the future as well. Parents will continue to send their kids to college, as the need for quality education is huge. When it comes to real estate, the major factors involved in perceiving and considering options are demographics and job growth. But the parameters associated with student housing are a bit different. Any area near a major college would be populated with students, and hence perfect for investment.
- Any person who has the experience of being an in-house university student will know that usually, schools tend to offer housing on the campus itself just to the first years, as they are unable to keep up with the high demand. In many situations, universities are unable to sustain the high demand for student housing. This is where third-party real estate investors and developers like Nelson Partners come in. They typically develop purpose-built establishments and apartments just outside college campuses or at least in their neighborhood.
If a housing property is located in one of the most vibrant localities in the town or city, people would not have to market it to increase its occupancy manually. Most of these neighborhoods shall already have restaurants, art galleries, malls, and markets nearby, which serve as magnets for students to rent the housing unit.