The student housing collapse is coming.
Reported by Education Dive, despite representing less than 6% of loans, student housing currently accounts for 40% of loan defaults in the multifamily sector.
Enrollment declines, the rise of online learners, and last decade’s housing boom creating an all-time high in student housing property prices have created a perfect storm real estate reality where a great deal of off-campus housing is currently unoccupied. And for those institutions with lease or land agreements with these developers, there is a real financial problem on the horizon.
The takeaway? What should the new university look like? And how should that effect our structural planning today?
May you continue to fight the good enrollment growth fight at your institution today, and we’ll see you again tomorrow.
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