Top Multifamily Trends in Student Housing: What to Watch in 2024?

Recent years have seen a significant influx of global learners, bringing vibrancy and diversity to campuses nationwide. The student housing market has experienced significant growth in recent years, particularly in the UK and the US. One of the most significant trends is the growing popularity of multi-family or multi-tenant housing as a better alternative for college student housing.

A number of variables are causing this transition, including changes in the education system, lifestyle preferences, and economic issues. This blog aims to highlight top multifamily trends to help investors and developers capitalise on this competitive market.

Why Multifamily Investors Should Focus on Student Housing?

Those looking to enter the multi-family sub-sector would be wise to invest in student housing. This is due to the following factors:

1. Steady Flow of International Students for Higher Education

Foreign students are not only constantly increasing but coming in large waves. These students guarantee a steady and consistent income stream by securing rentals well in advance of the academic year. Demand from international students is steady and resilient to changes in the economy, driven by the need for high-quality education on a global scale.

2. Recession-Proof Investment Option

The National Multifamily Housing Council has observed that recessions have minimal impact on student housing. Since student numbers don't fluctuate during a recession, multifamily student housing is a recession-proof investment.

3. Consistent Demand and Undersupply of Student Beds in Major Higher Education Cities

As there is a chronic shortage of student beds for higher education in major cities, the demand for these beds is huge. The continued shortage provides profit prospects for developers and investors looking for strong, long-term gains.

What Are the Top Multifamily Trends for Student Housing?

Getting parents on board is essential to make college students sign a lease on a property, especially if they will be the ones paying the rent. Research by Conversion Logix revealed that while 18- to 24-year-olds were most likely to search for student accommodation, a significant proportion of 45- to 54-year-olds were also searching. This indicates that parents are looking for apartments for their college-age children. Here are some multifamily housing trends that are expected to dominate the market and can help grab the attention of students as well as their parents:

#1 Flexible Rental Options

Flexibility is of paramount importance for today's students, who are often looking for short-term rentals. Multifamily student housing providers are responding to this demand by providing more flexible leasing options, such as academic year leases and month-to-month leases. Students from other countries and those enrolled in co-ops or internships who may need to relocate temporarily tend to pay attention to such options.

#2 Collaborative and Study Spaces

Student housing is changing to include more common study spaces and collaborative facilities. This is primarily due to the growing popularity of distance learning and the demand for collaborative workspaces. These communal areas are designed to support individual study sessions, distance learning, and group assignments.

#3 Affordability and Economical Solutions

Multifamily student housing provides more affordable housing options, such as micro-apartments, shared living, and other facilities. By offering affordable options, property managers can attract budget-conscious students without sacrificing quality.

#4 Social & Community Engagement

To help tenants connect, multifamily units host social gatherings, workshops, and leisure activities. Common spaces such as rooftop terraces, game rooms, and lounges are designed to encourage social interaction. In addition to improving student living conditions, strong community ties also lead to increased student retention.

#5 Smart Technology Integration

There is a growing trend of integrating smart technologies in student housing. Students today demand a tech-savvy environment, complete with voice-activated assistants, high-speed internet, and smart locks. In addition to improving the comfort and safety of residential buildings, these innovations promote sustainability and energy efficiency.

#6 Sustainability and Green Living

Green building materials, energy-efficient equipment, and solar panels are among the sustainable elements that multi-family student houses are gradually integrating. Community gardens, recycling initiatives, and bike storage are becoming increasingly popular in multifamily units. In a competitive market, properties that prioritise sustainability have the potential to attract environmentally conscious students and differentiate themselves.

#7 High Return on Investment

Since most multifamily projects have a return on investment (ROI) between 14% and 18%, student housing is a particularly attractive option. This sector is one of the most attractive for investors due to the constant and strong demand for student housing and the stability that international students offer. The combination of low vacancy rates, rising rental prices, and this robust ROI ensures that investing in student housing can lead to significant financial gains.

Final Thoughts

Due to the growing number of international students and the changing needs of modern students, the student accommodation market is experiencing extraordinary expansion. Multifamily housing can adapt to these changing needs, making it a more popular student housing option.

By adapting to the aforementioned multifamily trends, property managers and developers can meet the needs of students and succeed in a competitive market by designing attractive, practical, and sustainable housing solutions. These initiatives will improve student life while ensuring the long-term growth and sustainability of the multifamily student housing sector. Property operators looking to tap into new growth aspects in student housing, can list their portfolios with amber to attain global visibility.

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