Prospective students are looking at much more than the college and the programs it offers. They seek an understanding of the quality of life they will have during their time there. Much of those efforts involve looking closely at off-campus student housing.
Student housing developments have been rising to become one of the top priorities at colleges and universities across the country. Since many students do not live on campus, the need for student housing is critical. For example, at the University of Texas in Austin, over half of the enrolled students live off-campus, mixed between staying at home and residing in student housing locations.
Financial and Market Future
With higher education being vital for landing desired careers and having financial stability, more people are earning degrees than ever before. Between the years 2000 and 2017, the total undergraduate enrollment increased by 27 percent, going from 13.2 million to 16.8 million. This number is projected to increase to 17.2 million students by the year 2028.
Many developers and real estate investors realize the high potential student housing has and are diving in on the opportunity. In fact, many who have invested in multifamily residential properties are now making above average on returns. In 2017 and 2018, there were 45,500 student housing beds delivered in the United States, with predictable occupancy rate patterns over the school year. With the high demand for student housing, the inventory growth of student beds has grown since 2019, increasing 2.5 percent from the previous year.
Recent analytics on the Austin Housing Market has been released, showing that there is a significant population increase, with an average home value rise of 5.3 percent. Since the student population takes up a lot of the demographics, investing in this market is ideal for those looking to have a quality investment return due to the high number of property renting for a premium.
Building Trends for The Future
When people think of student housing, generally what comes to mind is bland, bare minimum living essentials with limited access to amenities. Though the industry has come a long way, now giving students housing facilities that offer resort-style living, there is always room for improvement. The future holds much more luxurious living conditions, which will not only attract students, but will also increase your profits as these units become popular.
To date, our team at FaverGray has completed 26 student housing projects consisting of over 26,537 student housing beds. With our successes, we have also been proactive in keeping up with the ever-evolving market and striving to fulfill the building trends for the future in student housing. Some of the new elements you will see being implemented into these buildings include:
- The development of high-rise apartment buildings to accommodate more students
- Micro-housing design and better parking options
- Well-developed common areas and private spaces
- Multiple study rooms
- Energy-efficient appliances and utilities
- More student paraprofessionals
- Updated technology and related devices
When it comes to designing student housing, it is imperative that the units are accommodating and appealing. Not only does this improve rental rates, but it will also strongly influence future financial profits within the growing real estate industry both in Austin, Texas, and everywhere else around the country.
Contact FaverGray today to discuss your unique student housing project.