The student housing market is just one of many available tools for the investor when it comes to real estate investment. It is quite profitable.
This sector deserves attention, even because of its stability, due to the constantly existing and renewing consumer base. There will always be students, and there will always be an offer to meet their needs.
Because of this, it is worth to know some of the fundamentals of the New York student housing sector that exist at the moment.
In December 2021, the segment decreased in the growth of rental rates by 6% in annual terms. In January 2022, only 20.6% of all offers in the market were booked for future rent. This is 9.5% lower than the rate in January 2021.
Nevertheless, this sector remains one of the most successful market segments. Also because it often provides investors with excellent income based on the difference between the capitalization ratio of units and interest rates and rental rates.
This is a strong earning tool that makes the market really attractive.
Transactions carried out by the RRA/GREA Group can be seen as an example.
Recently, the company has closed several real estate transactions across the country, selling about $178,000,000 in student housing in the northeastern United States, and more than $300,000,000 on the East Coast.
The 780-bed housing unity in Statesboro, Georgia was sold to Vesper Holdings for $41,700,000. In Syracuse, New York, RRA/GREA sold the property to Champion Real Estate for $65,000,000.
The transaction with Champion was closed in late March/early April 2022.
With the critical stages of the COVID-19 pandemic coming to an end, the student housing market is facing a potential record recovery.