The demand for luxury student housing might be drastically declining after its peak this past summer.
With supply outpacing demand for luxury student housing properties, trends in this real estate sector are worrisome, according to Education Drive.
Enrollment is declining at institutions across the nation and student housing-related commercial mortgage-backed securities (CMBS) are on the rise.
"Following a decade where everybody was anxious to build, build, build—and not just dorms—this glut of real estate is going to have to be dealt with going forward," Jean Close, an accountant and partner at The Bonadio Group, which performs audits for higher education institutions, told Education Dive’s Joe Bousquin. "Is it going to be a problem? Absolutely. And it's a little frightening."