Student Housing 101: A Primer for The Multifamily Investor

JANUARY 2025

By Maple Chen

This fall, millions of college students headed back to school, and along with them came an economic tailwind for local university communities. But long before these Gen Zs and Gen Alphas flooded the country’s numerous college towns, investors in purpose-built student housing communities were making plans to accommodate these students.

The creation of an institutional market for purpose-built student housing is a relatively new evolution in real estate, but dynamics of high demand and low supply growth have made it highly attractive to institutional capital. Today’s student housing segment is similar to the “lifestyle” multifamily housing sector, where the driving forces in rental choice are product quality, amenities and location. So, many multifamily investors are keen to participate, but there is a crucial distinction to make. Even if an operator has had successful multifamily properties, student housing is an entirely different product and requires unique strategies and specific experience for success.

LEASING IS PRE-LEASING

A student housing lease is not the same as a standard multifamily lease. Even though it is a 12-month lease, the physical occupancy typically lasts 11.5 months, running from August to mid-July. Leases are made on a per-bedroom basis, and the most popular floor plans are three- or four-bedroom units with a shared common area and kitchen. Bed/bath “parity” (meaning one bathroom for every bedroom) is also important. Units and apartments are typically fully furnished; in some cases, internet and other utilities are covered as part of the rent.

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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.