Construction Shortages Affect Student Housing
Digested from National Real Estate Investor
As labor deficiencies stymie new projects, developers are taking bold steps to continue building.
No matter how hard they try, student housing developers are falling behind. National Real Estate Investor’s Bendix Anderson, citing RealPage data, writes that more than a fifth of the 47,000 new student housing beds scheduled to open for the 2018-2019 school year missed their scheduled opening day.
“That’s because construction workers are now so hard to find that many developers are unable to complete properties on time,” Anderson wrote. “Meanwhile, the development pipeline remains large, raising the pressure to find workers to build new student housing communities.”
To solve labor issues, developers are being creative. They are starting projects earlier to allow more of cushion in scheduling. Developers are also delaying projects if they don’t think these communities will be will be ready for the following academic year, according to Anderson.
Developers are paying construction workers more to work overtime and even expanding their businesses by opening their own contracting firms.
“Most of the major student housing developers are national in scope and many have critical crews—like framing—in-house and they can transport to their project locations,” says Pierce.