Investors are always looking for new markets, and the higher education industry has been a very stable market for decades. However, over the past 50 years, schools have had some issues that have caused enrollment to decline or fluctuate – namely lawsuits and bad press regarding how they’re handling sexual assault, while there has been an overall increase in applicants. However, no one can deny that college is a necessary step for most people who want to get ahead in life, and firms like Nelson Partners specialize in student housing development.
What this means is that there will always be a demand for student housing, as there are always students who need a place to live while they’re attending school. Let’s take a look at seven reasons why investing in student housing is a smart move:
College enrollment is growing year over year, and this is especially true for private schools. The National Center for Education Statistics projects that the college-aged population (18- to 24-year-olds) will increase by over 20 million between 2020 and 2030. This growth is being driven, in part, by an increase in the number of international students coming to the U.S. for an education.
This means that there will be continued demand for student housing, which investors can turn into smart housing investments.
A college degree is more important than ever before – in 2018, the unemployment rate for high school graduates was 5.8%, while the unemployment rate for college graduates was 2.5%. And with more and more jobs requiring a college degree, students realize that they need to stay in school longer to get a good job.
This is good news for investors in student housing, as it means that students will be staying on campus for longer periods of time.
Students are increasingly looking for alternatives to on-campus housing, as it’s often overcrowded and can be expensive. This has led to a rise in the demand for off-campus student housing, which investors can capitalize on.
Student housing is a recession-proof investment because people will always need to go to college, even in tough economic times. In fact, demand for student housing often increases during recessions as students look for ways to cut costs.
The student housing market is growing rapidly, and this is expected to continue in the future. In 2017, the market was worth an estimated $130 billion, and it’s projected to grow to $230 billion by 2025.
Investing in student housing is a low-risk investment, as it’s a stable market that is unlikely to experience major changes. That’s because the market has always had a steady demand for student housing, and this isn’t expected to change in the near future.
7) The return on investment (ROI) for student housing is high compared to other real estate investments.
The ROI for investing in student housing is higher than the ROI for investing in other types of real estate. In fact, the average annual return on investment for student housing is 9%.
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