The big student housing construction boom of the last decade, fed in part by the large number of college-age Millennial Generation students born between 1981 and 1996, may be coming to an end.
But experts in the field say opportunities exist for yet more new student housing, particularly for Generation Z students born between 1997 and 2012, if only on a smaller scale.
According to a National Multifamily Housing Council report, enrollments at the nation’s colleges and universities have been generally, if marginally, decreasing for about 3 years now.
The report, The Future of U.S. Student Housing Demand, contends that while enrollments nationally are expected to continue their decline in the next few years, developers specializing in niche projects should have plenty of work.
The report contends that most of the new student housing will be seen at public four-year schools, with an estimated demand for around 448,000 new beds. Student housing demand at public two-year schools between now and the year 2031 will likely grow by around 79,000 beds.
Affordability is expected to be a major factor in future student housing projects, primarily because the “growth segments of student demographics are from lower-income segments.”
An additional factor: the ongoing reduction in government funding to many universities, which has, in turn, prompted schools to raise tuitions. Those raised tuitions, says the report, are “putting pressure on student budgets for housing.”
In a news release, Mark Obrinsky, chief economist with the National Multifamily Housing Council, also noted that many universities in the last year have decided to reduce the amount of on-campus housing.
But he added that those same schools “may pursue more public-private housing programs” to replace the on-campus housing model.
By Garry Boulard
