The Next Niche Market
Looking for the next real estate market niche where you can count on a 100% occupancy rate? Then, look no further than off-campus student housing. The student housing market is a profitable market with the bulk of the estimated $160 billion market being controlled by independent companies and investment groups which typically operate on a regional level. The investment in such projects are usually minimal at $50,000 to $150,000.
More and more college students are choosing to live off campus. For example, at the University of Nevada at Las Vegas, only 10% of the student body live on campus. Thus, increasing the demand for affordable housing which is within walking distance of the college.
Unlike traditional apartments, which are leased by the unit, student housing projects are often leased by the bed, and, increasingly, the leases are being guaranteed by a parent. Rents vary by region. For example, in the Southeast, rents can range from $450 to almost $800 a bed.
For more information on this latest trend, check out the New York Times article, “College-Town Real Estate: The Next Big Niche?”