28 Jun Luxury Student Housing: the Next Demand?
Recently college enrollment has exploded and campuses are struggling to keep up with housing demand.
More and more builders are starting to dabble in student housing.
The lure is pretty basic: as students stay in college longer to graduate, the need for on- and near-campus housing has never been greater. Multifamily and commercial builders in large metro areas are focusing on private student housing within walking distance of the campus. Some of these include a parking deck, a weight room, a clubhouse, and a grilling area.
The student housing market is getting competitive, so it’s no surprise that amenity packages are the first to be outdone by up-and-coming as well as established developers.
Resort-style student housing, which has become a major selling point for a growing number of schools, isn’t all that different from the high-class lifestyle amenities in popular retirement communities.
Soon expectations for these amenities may range from stainless-steel appliances, Internet access, and flatscreen TVs, to large pools and decked-out clubhouses with fitness centers and movie theaters.
Sustainability will also play a role. Campus Crest recently entered into an agreement with Solar City to put 9,000 solar panels on its housing. Other major student housing projects are transit-oriented.
The only real challenge is finding large amounts of land in close proximity to campuses. One thing that hasn’t changed is the traditional need for the perfect location.
What do you think about this new market?