Investors looking for stable, consistent returns may find college communities a smart place to put down cash. This is especially true as college enrollment continues to rise. Undergraduate enrollment was up 27% between 2000 and 2017, and the National Center for Education Statistics predicts another 3% uptick by 2028.
As more and more Gen Zers head off to school, investors have an opportunity to enjoy consistent returns and low vacancy levels in student housing rentals.
As a recent report from the Urban Land Institute and PwC puts it, “The overarching theme for student housing performance is one of stability. The number of new beds delivered over the past five years has held remarkably steady, and annual rent change has remained similarly stable.”
The best places to invest
Performance varies greatly by location, of course, and according to new data from RealPage, properties in certain athletic conferences tend to perform better than others.
What's at the top of the list? That’d be the Pac-12, which includes schools like Oregon State, the University of Southern California, Arizona State, and the University of Utah. According to RealPage, average rents in the Pac-12 sit at $852 per month.
The Big 10, the Atlantic Coast Conference, the American Athletic Conference, and the Mountain West Conference also rank in the top five in terms of rent performance.