On today’s show we are talking about how education is changing, and in particular what that means for owners of student housing.
When you make an investment in student housing you are making a few fundamental assumptions.
- The enrolment in the institution will grow or at least remain constant.
- Students will still need to come to campus to attend classes.
- Foreign students entering the country will generally need more student housing than local students who might be able to live at home with parents.
- The demand for student housing will grow over time, or at least remain constant. If the demand drops, then you can expect vacancy to increase in the local market and for rental rates to drop. Students will make housing decisions based on lowest price.
When you make an investment in student housing you want these assumptions to hold true for longer than your forecast holding period for your investment.
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Host: Victor Menasce
email: [email protected]