Resource Logo

Hello, you are using an old browser that's unsafe and no longer supported. Please consider updating your browser to a newer version, or downloading a modern browser.

Receive Updates
Resource Arrow Back to all
Date: October 1, 2018
Category: Real Estate

Taking a Look at the Transformation in Student Housing Investment [Video]

Created with Sketch. Run Time: 1:57
Gene Nusinzon Portfolio Manager Resource Real Estate Diversified Income Fund
In addition to typically generating higher income than other real estate sectors, student housing offers investors some downside protection in the late stages of a real estate cycle.
Share:

Forget the bare bones, cinder-block dorms with little other than four walls and a window. Student housing has evolved and is now comprised of modern apartments in off-campus buildings with many lifestyle amenities.

We are seeing lightning speed Wi-Fi, fitness centers, and roof deck pools as standard in new construction.

The demand for luxury student housing comes from two main areas. First, we look at investments in the urban core, where colleges offer an attractive mix of culture and convenience. We also focus on investments in large public universities, where enrollment is on the rise. Examples are tier-one state schools like Alabama, University of Texas, and Penn State with strong academic and athletic traditions.

Student housing investments came on strong following the Great Recession and have maintained robust demand and strong occupancy rates in the years since. Many college students extended their education during the downturn, while laid-off workers went back to school. With the economy now on solid footing, international students are contributing to demand. Despite a recent drop-off in visa approvals during the Trump administration, still nearly 400,000 students were issued F-1 visas in 2017. While supply is meeting this demand at some colleges, like Texas A&M and Florida State University, most areas continue to experience a supply-and-demand imbalance.

At Resource, we believe the sector has appeal for several reasons. In addition to typically generating higher income than other real estate sectors, student housing offers investors some downside protection in the late stages of a real estate cycle. People attend college in good and bad times, especially in today’s information economy and competitive labor market. A bachelor’s degree is the bare minimum to land an interview in many industries. Also, as capital crowds core sectors like office and retail, there’s potential alpha embedded in student housing’s solid fundamentals.

Resource Securities LLC, Member FINRA/SIPC.
 
This information is educational in nature and does not constitute a financial promotion, investment advice, or an inducement or incitement to participate in any product, offering or investment. It is not intended to be used as a tool to determine your specific financial situation, tax status, investment objectives, investment experience, suitability for any specific investment, risk tolerance or investment profile. Resource is not adopting, making a recommendation for or endorsing any investment strategy or particular security.

Receive Updates

* These fields are required.

Emails and white papers can only be sent to financial advisors in Resource’s broker-dealer partnership network.

Resource is the marketing name for Resource Real Estate, LLC, Resource Alternative Advisor, LLC, and their affiliates. Resource may distribute certain products through Resource Securities LLC, a wholly owned broker/dealer, Member FINRA/SIPC

All statements and information other than statements of historical fact included on this website regarding strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. When used on this website, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. You should not place undue influence on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make on this website are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved because of the number of risks and uncertainties, many of which are beyond our control, including but not limited to uncertainties concerning the properties being operated and sold or refinanced, leverage and meeting debt service obligations, operating properties in different locations throughout the U.S., general, market or business conditions and changes in laws or regulations. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf. To check the background of Resource Securities LLC or any registered individual, please go to FINRA’s BrokerCheck.