When job opportunities decrease during an economic downturn, students are more likely to enroll in college.(8)
The two largest student housing REITs collectively have only an estimated 2.1% market share in top university markets. The top 25 student housing companies own just 8% of the beds according to the Axio175 report which tracks the student housing market across 175 leading colleges and universities.
Most major college campus communities are fairly resistant to business cycle fluctuation due to a consistent number of students, faculty, and employees who live and spend money in the area.(9)
As first-time tenants with little or no credit, students often need their parents to co-sign leases and guarantee the payment of rent.
Suitable land is scarce as the areas on and around most major universities are developed.(10)
From 2008 to 2016, state spending per student at public two- and four-year colleges decreased 18 percent.(11)