Student Housing is Recession Resistant Indeed, Says NMHC Report
September 28, 2009 – Washington, D.C.–Overall, student housing is recession-resistant because of U.S. demographics, which are producing an increasing number of high school graduates, says Jim Arbury, senior vice president of National Multi Housing Council (NMHC) which recently released a report that seeks to determine whether the dramatic U.S. economic downturn has had an impact on enrollment and on-campus dormitory vacancy rates.
The study also finds that the economy can affect the type of housing students can afford. An oversupply in certain individual markets can also create problems for developers.
Off-campus student housing is one of the apartment industry’s most important niche markets and it has long been touted as recession-proof. NMHC’s “Special Student Housing Report: Has the Recession Had an Impact?” looks at freshman application data for 63 universities and compares 2009 levels to 2008 as well as 2003. It also compares 2009 total enrollment to 2008 figures and offers information on dormitory vacancy rates.
“This report offers valuable benchmarks on the toll the economy is taking on universities and, by extension, current demand for student housing,” says Arbury. “And it provides vital enrollment data a full six weeks or more before the universities release their ‘official’ numbers.”
“Our research indicates that applications and enrollments are up at most universities,” says Arbury. “The only places we generally find declining or flat enrollments are in states where the higher education budget has been dramatically reduced or where the university itself is geographically constrained from any further growth.”
This report is the seventh in a series of research reports produced by NMHC since 2004 to help apartment firms and investors better understand the dynamics of the student housing sector.
