Student Housing Demand Will Remain Strong and Focused on Affordability
Last week we posted about the growing amount of student debt in America – now reaching over $ 1.7 trillion. Now we’re turning to college students’ housing. The NMHC says student housing has historically experienced recession-proof demand as measured by enrollment in America’s public four-year universities. Recently, the NMHC’s Research Foundation released two new reports that explore the future of student housing as millennials age and are replaced by Gen Z. Indeed…
The first, “Structural Changes in Student Housing Demand,” examines the broad, structural, demographic and economic forces that will influence future demand for student housing, while the second, “The Future of U.S. Student Housing Demand,” generates more concrete forecasts of future student housing demand…”
Among the key findings in these reports:
- An estimated 46 million people will reach college age in the next 10 years, creating continued demand for student housing.
- Enrollment in post-secondary schools will increase annually by 1.1% on average from 2020-2031.
- Based on that growth, the student housing market will grow from a total of 8.5 million beds in 2020 to 9.2 million by 2031.
- Type of school matters. Most of that growth will take place at public four-year universities (448,000 new beds projected). At private four-year universities, however, demand for beds will primarily come from graduate programs (96,000 new beds projected). Student housing demand at public two-year universities is projected to grow by 79,000 beds).
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