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Investing in Student Housing – Should You Consider It?


Demand for Off-Campus Student Housing is on the RiseCollege towns are great places for real estate investments because they have a steady stream of students and faculty in need of housing, as well as having the potential for growth as the universities expand. College towns are inviting even to those concerned about a location’s job market. Many retirees in fact are choosing to move to college towns because of the variety of cultural and lifestyle benefits college towns offer. The U.S. population is expected to grow about 1 percent a year between now and 2050, but towns and cities with large universities will grow at three times that rate.

According to The New York Times. “With demand for private student housing expected to remain strong for the next several years, industry experts say, investors can almost bank on steady rent increases regardless of economic conditions or the interest rate climate.” Additionally, the cap rates will often exceed those of multifamily homes.

As universities grow because of the increasing student body population, onsite housing is often insufficient to meet the housing needs. Many students are either forced to or choose to live off campus. These students make up a steady stream of potential renters. Because of the high demand for off campus rentals in college towns they are often less vulnerable to housing price declines than non university towns.

When renting to students, be sure to get a substantial deposit to cover damage and cleaning costs, or in case your tenants decide to stop paying rent. Students may not be the easiest on your property so be sure the security deposit you collect is adequate.

To get information on acquisitions and joint ventures in commercial real estate Please visit our website at: and see what we have to offer. Author: Ron Lerman, Director of Acquisitions

by Ron Lerman
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Have you invested in student housing? Leave a comment and tell us about it!

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    Looking into investing in profitable real estate.

  • anthony

    Interested in investing in student housing

  • Mark VanBuskirk

    Have not invested in college town real estate yet. Very interested, pls send more info
    thank you!

  • Jim Oler

    Yes, I have student housing rentals. It is the best source of cashflow, I have of all the rentals that I have. Single family homes, seem to be the least cashflow units, lease wise for myself.

  • Jim Oler

    If I could sell my single family rentals, I would buy more student housing. Yes, make sure you get a sizable deposit to cover the damages, done by students. Also, keeping in touch with them, is important, and making sure they understand the consiquences, if there is damage.

  • Joe

    When my son & daughter were in college they stayed in the dorms for the 1st semester then moved into condos and houses.
    After visiting where they lived numerous time I would only consider renting to students if the building was completely concrete with drains in the middle of the floor in each room. All doors would be steel like in a navy ship.

    That said, when they reached senior year they could be considered a little more responsible. Then I would only rent to non-socials, e.g., virgins, non-drinkers, non-athletic A++ students.

    Need I say more?

  • Gary Greier

    Living in a growing college and university city myself, I see the opposite happening. With student housing on the rise, it has created havoc in the residential areas and in return, it has affected real estate prices and residents are furious. This will be a problem that will not go away any time soon. Student housing would be the type of real estate to invest in but nothing else.
    That being said, the college and universities are now only being funded by a government who is flat broke or technically just plain bankrupt. This goes for US and Canada. This cannot go forever. The money has to come from somewhere and with all of manufacturing traded away overseas for nothing in return, it’s not likey that these college and universities funding will last. I would be very careful investing in these types of cities.


    I buy, sell, rent, invest & advise clients invest in student housing, however my best student housing is located near private colleges. I do have housing available near state colleges/universities, but only rent to professors & university staff. Sad to say, there are differences in how one respects property of others. I also require a min. 2 months security deposit & 1st month rent, & have ALL occupants sign the lease, as well as ALL parents, as students pockets aren’t as deep as their parents, nor their credit. Be happy to assist you in your next investment propery wherever you decide to invest:

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