Student Housing: A Great Niche Real Estate Investment

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Student_housingInvesting in real estate is always interesting and can sometimes be rewarding, but investing in student housing can be a full contact sport. And like all full contact sports, it can also be very rewarding.

Student housing is a niche market in the real estate investment world. There is a high demand for it, and that demand will continue to grow in the coming years. Quality of the housing does not have to be the best to get rents that are above average, but the landlord also has to take on additional expenses. College students tend to be much more transient, rents are harder to collect, and students tend to wear out properties much more quickly than renters past the party years.

However, all that being said, the market for student rentals tends to be recession proof as a college education is never going out of style. If you are looking to invest in student housing, the following article from the Los Angeles Times will be helpful.

According to the National Center for Education Statistics, college enrollment will grow by 11% between 2003 and 2013. Higher education is less affected by economic trends. When times are bad, more people seek a college degree to improve the job prospects; when times are good, a sheepskin becomes even more important. Moreover, children of the baby boom generation are taking longer than their predecessors to graduate, so they need housing for a longer stretch.

Next, toss in the fact that rents for student-housing properties have been rising at a higher rate than at conventional apartments, according to the National Multi-Housing Council, and you have the makings for what savvy real estate investors call a “good niche opportunity.”

via Los Angeles Times.

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  3. Internships For Real Estate Students Hard To Find This Year
  4. Dean Graziosi Real Estate Investment Center Review
  5. The Changing Tide of Educating Real Estate Agents

There Are 11 Responses So Far. »

  1. Hi Tom,

    An interesting post on investing in Student Housing and the article on Student Housing in LAtimes is informative. As the article discuss about the facts like how one has to face problems, how this investing is profitable for the investor, the way student house rents increasing and helpful guidelines to the new investors. Thanks for sharing

  2. This is an interesting post and was quite informative.

    Thanks for Sharing.

  3. As a college student and someone interested in real estate this article brings about some contradicting ideas for me. “Quality of the housing does not have to be the best to get rents that are above average”, but is it not true that with the increasing demand and hence supply of off-campus student housing there will need to be either an increase the quality, a decrease the price, or both? The article states that “children of the baby boom generation are taking longer than their predecessors to graduate, so they need housing for a longer stretch” and with this increasingly educated market it seems it would be beneficial to create housing that attracts a more mature audience. This could include more expensive housing which includes more quality options. What about catering to the customer in order to run a successful business? I argue that though it may seem like quality is of little importance to college students, times are beginning to change. Expect that the current expense of getting into the niche market will only increase as the average college student becomes more real estate savvy.

  4. I know many people have retired on college housing rental real estate. If you can find affordably priced areas I would love to hear about it. Thanks for the article, I wish you had spent more time on identifying college towns that make sense to invest in.

  5. Hello, I would to let everybody know that my company specializes in student housing, if you are a attending a University across town or across America at http://www.MascotStudentHousing.com

  6. This is a great business indeed but as a pro doing it full time, let me be very lucid here: this is not, I repeat not for everyone. I have seen some owners just get crushed in this business because they are either too weak or put in the first students that came along and then ate them up alive shortly thereafter.

  7. [...] this month we talked about the benefits of buying into the student housing market, and now Marketplace has an interview on the benefits of owning off campus housing as a investor [...]

  8. [...] The drawbacks to managing student housing: Rents can be harder to collect, students tend to be very transient and property wear and tear tends to be higher. [...]

  9. Can anyone help…need detials on the LA times article? I cannot locate it in there archives.

    Thanks in advance Steve

  10. DIAC, Inc : DORM IN A CUBE
    “Our thinking brought us back inside the box”
    _________________________

    A NEW CONCEPT FOR STUDENT HOUSING !!

    Thought you maybe interested in this new concept !

    We’ve integrated all the comforts of a hotel room and or a contemporary tiny house into a 10′ x 10′ x 10′ space including shower, toilet, sleeping area, kitchen, storage and more. Environmentally friendly – wooden construction, ecological and renewable – “Green Cubed” ! Complies with very high environmental quality standards.

    This year “Carre d’etoiles” was launched all around France and was so very successful…
    we will be coming to the USA/CANADA in 2010 !

    Would be glad to send you a pdf presentation of the CUBE and what we call “Cube City”
    student housing concept. Please advise.

    Remaining at your service,

    Daniel Jean-Jacques Inversin, hotelier – consultant
    CARRE D’ETOILES -SOLE AGENT/ IMPORTER USA/CANADA
    11917 Whitehorse Road, Truckee, California 96161 USA
    Directline 530.386.0325 Fax: 530.587.3938
    E,mail: FrenchCube@mindspring.com

  11. Hello Everyone,

    My name is Grant Ancevic. I am a student housing investment property specialist. Some refer to me at the “Go-To-Guy” for active and passive student housing real estate investors.

    Off-campus student housing is one of the real estate industry’s most important niche markets. As a broker, provider and supplier of student housing, we are in the unique position of continuing to grow during a national economic downturn. As enrollment continues to increase across the country for colleges and universities, so does the need for quality student housing. Feel free to contact me anytime for FREE information with NO OBLIGATION about cashing in on this profitable and recession-proof real estate niche.

    BROKERS! Join My Pinnacle Club and Make TONS of Commissions without Doing Any Work Whatsoever!

    BUYERS! Join My Platinum Club and Beat Out Other Buyers to HOT, NEW Student Housing Investment Properties and Development Opportunities!

    INVESTORS! Build Wealth FAST and Get All of the Active Owner Benefits of a Professional Real Estate Investor without Being an Active Owner! Get Returns on Your Money AND Also Get the Benefits of Appreciation, Tax Savings and Equity ON TOP OF YOUR RETURNS!

    LANDLORDS! Profitably Manage Your Student Housing Investment Properties without All the Tenant Headaches and Management Hassles!

    SELLERS! Sell Your Student Housing Property FAST and for TOP DOLLAR!

    Best Regards,
    GRANT M. ANCEVIC
    Student Housing Investment Property Specialist
    The “Go-To-Guy” for Active and Passive Student Housing Real Estate Investors
    Student Housing Investments, LLC
    (612) 961-5858

    Licensed Real Estate Broker in the State of Minnesota

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