Student Housing Investment Edges Down
A recent report from the NAHB’s Eye on Housing says private fixed investment in student dormitories declined 4.4% to a seasonally adjusted annual rate (SAAR) of $ 3.2 billion in Q2, 2021. However they do point out that Student housing investment is on the road to a limited recovery, as the economy reopens and pent-up demand is realized. The cited data is from a recent Bureau of Economic Analysis.
“Private fixed investment in student housing experienced a surge after the Great Recession, as college enrollment increased from 17.2 million in 2006 to reach 20.4 million in 2011. However, during the pandemic, private fixed investment in student housing declined drastically from $ 4.51 billion (SAAR) in the last quarter of 2019 to a lower annual pace of $ 2.86 billion in the second quarter of 2021, as COVID-19 interrupted normal in-person on campus learning modes.”