By IvyLee Rosario | Multi Housing News
Fundamentals could take a hit unless college enrollment returns to growth mode
The U.S. student housing market had its seventh consecutive year of annual rent growth in 2016, as inventory increased by 56.3 percent over the past 10 years. Kroll Bond Rating Agency released a report summarizing current trends in the student housing industry, and although it is expected that the sector will perform well in 2017, there are some declining numbers that student housing investors should keep an eye on in the coming years.
According to the National Center for Education Statistics, enrollment growth is expected to increase by 2.2 percent throughout this year, but is slated for decline in 2018 through 2020. Occupancy rates have only decreased in the last three years and were up 0.6 percent last year. As of December 2016, approximately 15,400 units were under construction nationwide, representing 4.3 percent of the existing inventory. If all these units are completed this year, the supply growth will be in line with 2016.
