Did you know that Student housing transactions volume totaled more than $9 billion in 2016, which is a 62% increase from 2015. These numbers were largely driven by some sizable portfolio sales, but 2016 still marked the sixth consecutive year in a row where sales volume reached an all-time high.
The increased demand for student housing product, compressed cap rates and drove stiff competition in what had formerly been a niche industry that had not been dominated by any one particular profile of investor. You may ask your self… “Why is the demand for student housing so high”, here is why.
Universities and Colleges are doubling their numbers of student enrollment each year, leaving students from out of town areas needing places to stay because often times not all students are lucky enough to get acceptance into purpose built buildings like Student Residence’s and are in need of an alternative, in which case most students will sign a lease with others on a house.
As a result of these trends, we believe all signs are pointing to there still being a good amount of runway left when it comes to investing wisely in the student housing sector. At The Hensen Team, we believe that investing in Real Estate is something everyone should consider. So while September is here, think of those students who may be looking for a place to stay and consider using The Hensen Team to represent you a Student Housing Investment!