Off-Campus Housing Remains Strong Following Challenges in 2020
By Natalie Jones / 06.30.21 / 3 min read
Image by Green Chameleon on Unsplash
Once universities across the country shifted to online learning, uncertainty arose regarding the demand for off-campus student housing going forward. However, off-campus housing has been resilient throughout the course of the pandemic according to recent findings from news source Wealth Management.
Off-campus housing: what to know
According to Wealth Management, this type of housing came out of the pandemic on “strong footing,” and interest in moving into off-campus housing for this fall is consistent with where it was at before the pandemic started. Although investors significantly decreased spending on student housing properties during the second and third quarters of 2020, spending in the fourth quarter shot up to $4.3 billion as transactions returned. Overall, the annual total wasn’t drastically different from the pre-pandemic figure despite quarterly fluctuations.
This year, the off-campus housing sector has gained more momentum. March and April 2021 were busy leasing months, generating some of the highest levels of activity over recent years. Rent has recovered in many areas including top-tier universities.
Carl Whitaker, senior manager of market analytics for RealPage, weighed in on what’s to come for off-campus housing. He indicated that the more “‘normal'” fall and spring semesters planned for this upcoming school year are increasing demand for off-campus properties.
The student housing sector emerges from the pandemic with signs of heading in the right direction. Time will allow for even more of a recovery, but for now, the demand is in a position to stay strong down the road.
Locally, Michigan State University, located in East Lansing, is now requiring incoming students to live on-campus for their first two years, beginning with those who start at MSU in fall 2021. This has not deterred developers from building off-campus housing as those numbers continue to rise. We will be interested to see how the our local market matches the national trends in the future.
To read our source, click HERE.