Standard College Dorms... A Thing of the Past...

While on-campus housing is typically mandatory for first-year college students, the luxurious off-campus housing options surrounding campuses across the country are increasing in popularity among upper classmen. Private student housing developments have proven to be beneficial to some universities, as they offer additional housing options and amenities without the university having to fund such projects. Additionally, many universities have faced challenges with the availability of housing on campus and aging dormitories. As some universities are beginning to be conscientious of how funds for student housing projects are utilized, residential investors have found a unique opportunity. According to a report released by TH Real Estate, transactional volume of student housing is on track to exceed $9 billion for 2016 (based on estimated closed transactions as of January 2017).

The significant number of individuals enrolled in universities coupled with pressures at universities to maximize the utilization of funds has allowed this niche rental market to thrive. Luxury student housing developments have become increasingly common across many of the larger universities. This has also allowed for growth in the construction industry, as many of these student housing developments include several units in addition to a number of growing amenities. American Campus Communities (one of the largest developers of student housing apartment communities) has several projects currently under construction, eight of which are expected to be opening in the fall of 2017. These developments feature state-of-the-art fitness centers, swimming pools and volleyball courts, on top of fully furnished units.

Pittsburgh has also witnessed growth from student housing developments such as the Empire Apartments, which are currently under construction in North Oakland. This $106 million development is expected to be open in the fall of 2018 and will serve as a prime location for students attending Carnegie Mellon University and the University of Pittsburgh.

Student housing developments have become a great opportunity for investors, as enrollment at universities has remained consistent and is expected to grow over the next ten years.

For more information visit the Our Thoughts On... blog or contact Schneider Downs.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Pell Grant Program Facing Shortfall
Audit BY Erin Puko-Wilking
2024 Audit Plan Hot Spots
2024 Policy Shifts: Essential Updates Every College Should Know
Cap Table Basics for Startup Companies
Potential Accounting Changes for Environmental Credits
Postcard from the 38th annual AICPA & CIMA Construction and Real Estate Conference
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×