As the demand for high-quality student accommodation continues to grow, the need for innovative housing solutions designed specifically for students is on the rise. Developers are actively seeking out new approaches to meet the needs of this expanding market. Read on.
The student housing investment market is now worth over $10 billion in the U.S. alone, and its value is expected to exceed $14 billion by 2027.
The student housing sector seems to be in a great spot for the fall 2023 semester, with high demand and record-breaking rental rates anticipated for the 2023-2024 academic year.
Did you know: The pronounced shortage of student rental housing has boosted rents in addition to property values. At the 200 largest US universities, average rents increased approximately 7 % year-over-year through Q1 2023.1
- The United States has a significant demand for rental housing to cater to the 22 million university students. However, the 175 largest universities in the country can only accommodate 22% of undergraduates, creating an urgent need for additional housing from the private sector. In general, students opt to rent off-campus properties by bed for a minimum duration of 12 months.
Preleasing Reaches 94.6%
In October 2023, preleasing for the 2024-2025 academic year began with great success, achieving a remarkable 25.2% for the Yardi 200.
What Students Want
Various trends, such as co-living spaces and off-campus apartments, are shaping student housing. Student housing is focusing more on community, where students want more offline opportunities to connect with their roommates and friends outside of class.
- Study spaces, outdoor areas, wellness centers, coffee bars, and technology-driven features are also a must for students.
- The student housing industry is being shaped by five major trends: managed WiFi, package rooms, outdoor community spaces, proximity to student transit, and sustainable buildings.
Smart Tech In Student Housing
- Smart security systems – With things like key fobs and cards, students can get in and out of their student housing facilities without having to carry bulky keys around.
- Smart lighting – By setting up smart lighting technology, students can adjust their lighting right from their phones.
- Video intercoms – Being able to see who’s at the door before opening is a big advantage and helps increase security.
Outdoor Community Spaces
Consider incorporating various ideas for outdoor community spaces into the design of student housing:
Student housing presents a promising opportunity for developers to provide students with affordable housing, bridging a significant gap in the market and BASE4 is here to help.
BASE4 plays a crucial role in the construction industry by providing innovative and efficient solutions for property developers and managers. We help developers, general contractors, and factories find better ways to build through innovative technology, forward-thinking design, and offsite manufacturing.
BASE4 has a product-centered approach using 100% Revit design. We perform all services in-house, including architecture, structural engineering, MEP engineering, interior design, 3D BIM visualization, and construction administration.