Surging Demand Drives Cap Rates for Student Housing Lower
March 14, 2022 | Bendix Anderson | WealthManagement.com
Investment sale volume on student housing properties reached a new record in 2021 as the sector has fully recovered and schools largely returned to full on-campus instruction.
Student housing properties have emerged stronger than ever coming out of the COVID-19 pandemic and that has led to increased interest from real estate investors, including some that had not targeted the sector previously.
With many colleges now fully back to in-person classes and the U.S. economy on strong footing (despite some headwinds from inflationary pressures and global uncertainty), student housing sales volume is now higher than it was prior to the beginning of the pandemic. As a result, 2021 ending up being the biggest year for student housing sales in the last decade.
