Today, Taylor Gunn, Axiometrics’ analyst for the Student market, proved that this market is a mature asset class that is much more complex than students living in apartments. There’s a wider playing field now, and competition is on the rise.
According to Gunn, “The competition is increasing, and it’s even more important to know what’s going on in your market and how to stay ahead – know when to start leasing and what your competition is offering in terms of rents, amenities, concessions, etc.”
She provided these 8 factors that influence the student market:
- Enrollment Growth
- Demand driver
- Size of University
- Matters when it comes to growth, performance, and demand
- 14-17 year old and 18-24 year old population growth
- On-Campus Housing
- Important to know campus plans, cost, and options available
- Rising tuition and new properties priced at the top of the market
- Proximity to Campus
- #1 Amenity Correlation with performance
- New Supply
- Some markets seeing effects
- Operating Practices
- Marketing and Leasing Tactics
On the topic of leasing velocity, Taylor reported, “Every year outpaces the last.” She added that one factor influencing this growth is the increasing number of giveaways property managers are using as incentives.
Taylor added, “The cost of earning a degree has risen 2.5 times what it was…” This obviously affects what students can afford—and impacts lease-ups.
Student is coming into its own as an asset class—there is a lot more activity here than ever before, and predictions are that this trend will continue.
Learn more about the session from Axiometrics.