Jim Arbury, senior vice president of National Multi Housing Council (NMHC), believes so. NMHC recently studied whether or not the recent recession has had any impact on the property type.
NMHC’s researched determined that U.S. demographics kept student housing from feeling the pain other real estate sectors are feeling. The study, titled “Special Student Housing Report: Has the Recession Had an Impact?” looked at 69 universities comparing enrollment data from 2009, 2008 and 2003. NMHC found that enrollment was up at most universities studied.
Given the current popularity of this niche market, will we start to see a boom in new student housing projects from eager developers who are looking for the next hot product type funded by lenders who are more than willing to lend them the money? Or will the overall tight credit market keep new projects in check for the next few years, thus keeping supply in line with demand? From what we’ve seen from clients, it appears as though many developers are looking to jump on the student housing bandwagon, but the lack of capital is keeping them from putting a shovel in the ground anytime soon.
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