Investing in Student Housing - Should You Consider It?

College towns are great places for real estateof economic conditions or the interest rate climate."
investments because they have a steady stream ofAdditionally, the cap rates will often exceed those of
students and faculty in need of housing, as well asmultifamily homes.
having the potential for growth as the universitiesAs universities grow because of the increasing student
expand. College towns are inviting even to thosebody population, onsite housing is often insufficient to
concerned about a location's job market. Many retireesmeet the housing needs. Many students are either
in fact are choosing to move to college townsforced to or choose to live off campus. These
because of the variety of cultural and lifestyle benefitsstudents make up a steady stream of potential
college towns offer. The U.S. population is expected torenters. Because of the high demand for off campus
grow about 1 percent a year between now and 2050,rentals in college towns they are often less vulnerable
but towns and cities with large universities will grow atto housing price declines than non university towns.
three times that rate.When renting to students, be sure to get a substantial
According to The New York Times. "With demand fordeposit to cover damage and cleaning costs, or in
private student housing expected to remain strong forcase your tenants decide to stop paying rent. Students
the next several years, industry experts say, investorsmay not be the easiest on your property so be sure
can almost bank on steady rent increases regardlessthe security deposit you collect is adequate.