The demand for student housing is gearing more toward apartments with full amenities, and, therefore, comes with higher constructions costs. Increasing amenities leads to higher signing rates, and with pre-leasing for next year going well, the student housing industry seems to be looking at an optimistic 2015. Even though costs are up from last year and the supply will decrease, this is not stopping college students from buying purpose-built housing.
Properties opening this fall have already pre-leased an average of 44%t of their student beds, making this year’s leasing season the fastest since 1995. On top of that, enrollment for 2015 is expect to increase nationwide, which will raise the demand even further for student housing.
Not as many projects will be complete in 2015 as there were in 2014, but 2015 will be a big year for new construction. With construction costs up and land space diminishing, the supply for student housing will grow at a slower rate throughout this year, but students will continue to desire luxury apartments.