Three Ways Technology is Accelerating the Student Housing Industry

The student housing market appears to be poised for continued moderation. This year has seen a slowdown in leasing velocity and compression of rent growth, though there have been bright spots. Overall rent growth for U.S. student housing has compressed to 1.4 percent from 1.8 percent since last fall, according to the latest data. Peaks in new supply or supply/demand imbalances have tempered leasing performance at many schools. At the same time, steady flow of new inventory and a good footing for enrollment growth have proven better for others. Through the second quarter, Auburn and Bowling Green were hovering at or near 8 percent rent growth while the University of Southern Mississippi approached 7 percent. On the other hand, Texas A&M, which has been a consistent leader in adding new beds, lagged at -6.6 percent resulting from concessions. The landscape looks similar for 2019. New supply levels at around 45,000 beds annually should mirror inventory that arrived last year and is coming in similarly in 2018. Florida State University should top deliveries while overall development will be steady, according to RealPage analysts. Beyond 2019, the student housing landscape may be headed for change. Recent slowdowns in job growth nationally suggest that student enrollment could climb, therefore sparking greater demand. For now, investor interest still appears to be hot with an increase of about 12 percent year over year in transaction volume to about $225 billion. The influx of foreign capital has been healthy in recent years at larger state universities. Being prepared and acting on what the market brings While the data may suggest things are going to be status quo for the short-term, student housing operators have to be prepared for whatever the market brings. That requires knowing the market and understanding how revenue management and business intelligence can maintain the financial health of student housing apartments. “The student housing landscap...