Student Housing Construction Moving Closer to Campus
Digested from RealPage
As this cycle has matured, developers are building closer to campus. Find out that is changing what they are building.
Any student housing developer will tell you a development’s chance of success increases the closer it is to campus.
As this cycle has matured, developers have been applying that theory to their new projects.
“The student housing marketplace has seen new construction continue to locate closer and closer to campuses across the nation as the cycle has progressed,” writes RealPage’s Carl Whitaker. “And with diminishing site availability near campuses, developers have tailored their projects accordingly, building taller buildings and shrinking unit sizes.”
The percentage of high-rise projects, those with seven or more stories, according to RealPage, has risen throughout this cycle. In 2011, eight percent of new beds were in high-rises. Last year, high rises were more than a quarter of new deliveries.
“That higher composition of high-rise properties points to an increasing desire to build closer to campus,” Whitaker writes. “And the broader data set supports that claim, as high-rises are located much closer to campus than non-high-rise projects. In fact, the average new high-rise was built two-tenths of a mile from campus. That proximity translates to a location essentially across the street from campus boundaries.”