Gains for Student Housing Construction

According to the data released by Bureau of Economic Analysis (BEA), private fixed investment in student dormitories inched up 1.2% to a seasonally adjusted annual rate (SAAR) of $3.96 billion in the last quarter of 2023, after a 5.5% increase in the third quarter. Private fixed investment in dorms was 10.2% higher than a year ago, but still slightly below the pre-pandemic level.

Private fixed investment in student housing experienced a surge after the Great Recession, as college enrollment increased from 17.2 million in 2006 to reach 20.4 million in 2011. However, during the pandemic, private fixed investment in student housing declined drastically from $4.47 billion (SAAR) in the last quarter of 2019 to a lower annual pace of $3.01 billion in the second quarter of 2021, as COVID-19 interrupted normal on-campus learning. College enrollment fell by 3.6% in the fall of 2020 and by 3.1% in the fall of 2021, according to the National Student Clearinghouse Research Center.

Student housing private investment is on the road to recovery as the pandemic has ended. In-person learning requires college students to return to campuses, boosting the student housing sector.

Discover more from Eye On Housing

Subscribe to get the latest posts to your email.

One thought on “Gains for Student Housing Construction

  1. The uptick in student housing construction presents opportunities for lenders in the construction loan market. As developers embark on new projects to meet the demand for student housing, construction loans may see increased utilization to finance these ventures and capitalize on the growing market segment.

Leave a Reply