Operating In The Student (Housing) Sector

DECEMBER 2024

By Maple Chen

The right operator is key to success in purpose-built student housing due to the sector’s unique dynamics.

The flow of institutional capital into the purpose-built student housing (PBSH) sector is a growing trend, supported by the dynamics of high demand and low supply growth. On the surface, student housing reassembles the “lifestyle” multifamily housing sector where product quality, amenities and location drive tenant choice. These similarities have drawn the attention of traditional multifamily investors, but a crucial distinction

should be made. Student housing is an entirely different product requiring unique operational strategies and specific expertise for success. Even if an operator has successful multifamily properties, it may not translate to the student market.

Understanding how the sector operates, as well as how it differs from the traditional multifamily housing business, is critical to determining which operators are worthy of a partnership.

Forecasting Supply and Demand

With student housing, it is not enough to be near a college or university. Each institution exists as its own market, and not every university will be a great fit for an investment in purpose-built student housing. Current enrollment trends favor large four-year public national universities, particularly those in the Power 4 athletic conferences, which include the SEC, ACC, Big 10 and Big 12.

Institutions in these conferences have strong brand recognition and represent the potential for higher ROI.

With large — and growing — enrollments, these schools tend to attract students from all over the world. Sites

within walking or short driving distance of these campuses may be stronger candidates for investment, as they

are in the highest demand.

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ABOUT ACCORD CAPITAL PARTNERS LLC

Accord, through its affiliates, is a global capital advisor, principal investor and investment manager. With its headquarters in San Francisco and personnel in Chicago, London, Hong Kong and Seoul, Accord engages with a wide variety of participants in the real estate private equity industry. Accord Capital Partners, its broker/dealer affiliate, provides advisory and capital raising services in the United States. Accord Europe Limited, its broker/dealer affiliate, provides advisory and capital raising services in the United Kingdom and Europe. For further information on Accord, visit: www.accord-group.net.