The enrollment in universities are steadily increasing, the rental growth rate for student housing is evolving and continuing to grow at a rapid pace.
Building new housing for Universities and updating existing units is the heart of SWET Construction Group. We partner with our clients to ensure a well designed and successful project.
In an article in Multifamily Executive with RealPage, they talk about the surging student housing.
At the end of the fall pre-lease season, student housing occupancy surged and ended at a record high. As of September, 94.1% of student housing beds were occupied at the core 175 universities tracked by RealPage.
According to RealPage, September’s occupancy was a sizeable 200 basis points ahead of August’s final pre-lease rate of 92.1%. While a basis point climb is common between August and September as students sign last-minute leases, the typical increase averages closer to 100 basis points. For example, the occupancy rate in September 2020 increased 110 basis points month over month, with September 2019 coming in at 130 basis points over August.
This year’s basis point climb follows a sluggish spring and then a strong summer for pre-leasing. In addition, September’s final occupancy reading is 590 basis points higher than a year ago and 130 basis points higher than in 2019.
“Throughout the last year, during the COVID-19 pandemic, the longstanding trend of rent growth performing better at properties closest to campus reversed itself,” said RealPage. “However, the trend of outperformance among pedestrian assets held true among occupancy readings.”
For properties within a half mile to campus, occupancy reached 94.8% in September, the highest rate among the distance categories and approximately 70 basis points higher than the national average. For properties between a half mile and one mile from campus, occupancy mirrored the overall average at 94.1%. Occupancy rates at properties more than one mile from campus came in with the lowest rate of 91.8%. However, September occupancy at all distances outperformed the 2020 and 2019 rates.
Out of the 175 universities tracked by RealPage, more than 120 found September occupancy to be above the 90% threshold, which is considered healthy and essentially full. The handful of schools below the 80% occupancy in September were nearly all commuter schools or campuses working through years of elevated supply volumes.
Student housing in the Southeastern United States, Florida and Georgia, have become the more consistent and powerful investments opportunities. As a leader in multi-family construction and renovation, SWET Construction Group uses the latest technology, focuses on what consumers are looking for and the latest trends to deliver quality solutions to your projects. Our portfolio consists of construction of multi-family housing, assisted living facilities, condominiums, hospitality, commercial and renovations.
SWET Construction Group handles all aspects of renovation and repair services, including disaster repair, from demolition to the finished project.
Contact SWET Construction Group for your next project.