What Will a Recession Mean for Student Housing?
Digested from Bisnow
While most people agree a recession is coming, the student sector is well prepared. Find out why.
Most experts agree that a recession is coming.
When it does arrive, executives in the student housing industry think they will be in good shape.
Conventional wisdom holds that college enrollments go up during a recession as students decide to stay longer and adults go back for advanced degrees.
“It’s good for student housing because we perform well in a recessionary environment,” Pierce Education Properties CEO Fred Pierce said at Bisnow’s Annual Student Housing West conference. “[It’s] not so good for our other colleagues in the four main food groups [office, multifamily, industrial and retail] but I’m of the belief that the ‘R’ word is here sooner rather than later and it’s going to be in 2019."
If a recession goes arrive this year, it will give the industry a chance to prove its worth to investors.
“We’ve been telling everybody for years that we are recession-proof,” NB Private Capital CEO Blake Wettengel said. “It’s time to put our money where our mouth is.”