Student housing market continues to grow in US

April 25, 2018

Trends are showing that there continues to be significant growth in the student housing sector in the US, with increasing demand for housing with amenities and a need to replace aging facilities. The student housing market is a growth industry with a multitude of room for expansion as currently only 20% of the housing demand for colleges is met by the schools themselves. Despite the recent years’ activities of developing new projects and replacing old dilapidated ones, only a fraction of the market’s demand for adequate accommodation has been met.

In 2016 there was a rise of 2.3% in the price per bed for accommodation in the student market, which stands at an average of $618 for this end of year. Proximity to the campus is a major parameter which effects pricing, as well as security, furnished apartments, social events and other amenities, such as free WIFI. The average cost per bed per year for a location up to half a mile from the campus reached $672. In comparison for housing over a mile and a half from the campus the average cost per bed is $537. For the latter there was a rental price rise of 1.7% since the previous year. The statistics also show that already 83.4% of the available housing had been rented ahead of time in June for the following year’s 1st semester.

According to Bill Bayless, President of the American Campus Communities, taking Austin, Texas as an example of a city with abundant new projects, the occupancy rates are well over 90 percent with only 40% of the newly enrolled students enjoying relatively new housing solutions. Therefore the vast majority of students are left to acquire accommodation in conventional apartments.

Saban Real Estate, a subsidiary of Capital Group Inc. embarked on a massive endeavor this last November adding 19 student housing projects to its portfolio for $508 million. The move entailed a strategic partnership between Saban Real Estate with Campus Advantage, and it has led to Saban’s rise as one of the largest US holders of off-campus student properties for rent. The aim behind the move is to create a greater amount of purposeful student housing projects at a lower rental cost.

The Real Estate Investment Trusts (REITS) that focus on real estate for the student housing sector are providing their investors with regular income streams and long-term appreciation of the properties. American Campus Communities is one example of a public company which has grown since 2004 from 16 to 163 properties, with an average growth of 3.4% per year and a 97.7% occupancy rate. The company also has a 4.5% market share in its target markets. These numbers convey the boom which we are witnessing in this profitable market. Despite the growth of online tuition options, there is growing demand for even more housing as college enrollment in brick and mortar institutions rises year by year. Student housing is also considered to be a recession-resistant long term investment as a larger amount of people will attend colleges or study for additional years in the state of a bad economy. The market also remained semi-resilient during the 2007/8 financial crisis with rental prices not dipping too heavily.

College enrollment in the US will reach 19.8 million students by the year 2025 according to the National Center for Education. These statistics represent a total increase of 14% from 2014 enrollment figures. Rising rents and increased demand, which are driven by a strong economy, demographics and growth in higher education enrollment, have led to a large amount of investors entering the lucrative school housing sector. The current perception is that when diversifying your portfolio within the multifamily rental properties segment, there is every reason to hedge your investment in this booming domain.

Are you interested in exploring some of our investments? Join us today for additional information.

Join iintoo's Community

We’ve made it easy to connect with fellow investors so you can enjoy a wealth of real estate investment experience. Join our family today to share, learn, and invest with the best minds in the industry.

Start Now

*When we refer to “Equity Protection” we are referring to an arrangement where iintoo epiic GP LLC, the general partner of each covered issuer (“Covered Issuer”), promises that, even in the event the underlying project is not profitable or records a loss, the investor in the Covered Issuer shall receive a specified amount equal to the original principal investment he/she/it provided (less other amounts already received by such individual investor during the course of the investment) subject, however, to significant limitations including but not limited to repayments for losses in the Covered Issuer are only made up to a maximum amount of funds available from the retention account and the policy (where such policy limit may be less than the total amount invested), repayments are on a first come, first serve basis, and losses are aggregated across Covered Issuers subject to the same retention account and policy. iintoo epiic GP LLC, and not investors, is a party to the policy with Everest Insurance®. As a result, investors have no direct legal rights under the policy. In addition, beyond use of the Equity Protection proceeds from the retention account and the policy, neither iintoo epiic GP LLC nor the Covered Issuer has any obligations to indemnify investors for losses. For more information, please see “Business of the Company—Equity Protection” and “Risk Factors—Risks related to the Equity Protection” in any of our issuers’ private placement memoranda.

The above may contain forward-looking statements. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities accessible through the iintoo™ social network real-estate investment platform (the “Platform”) are intended for accredited investors. Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by and iintoo Investments Ltd. (“iintoo”) or any third party working on our behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors must be able to afford the loss of their entire investment.

Equity securities are offered through Dalmore Group LLC. (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC. Any real estate investment accessible though the Platform involves substantial risks. Any financial projections or projected returns are projections only, and iintoo makes no representations or warranties as to the accuracy of such information and accepts no liability therefor whatsoever.

Investors should always conduct their own due diligence, not rely on the financial assumptions or estimates displayed herein, and should always consult with a reputable financial advisor, attorney, accountant, and any other professional that can help them to understand and assess the risks associated with any investment opportunity. Any investment involves substantial risks. Major risks, including related to the Equity Protection and/or the potential loss of some or all principal, are disclosed in the private placement memorandum for each applicable investment.

Neither iintoo nor its affiliates nor Dalmore Group LLC makes investment recommendations nor do they provide investment advisory services, and no communication, including herein or through the Platform or in any other medium should be construed as such.

iintoo, its employees and affiliates are not insurers or insurance brokers, and do not offer insurance services, advice or information to new or existing investors.
Insurance is provided to Iintoo epiic GP LLC (and placed through Cobbs Allen, a licensed insurance intermediary) by Everest Insurance®, subject to all of the terms and conditions of the applicable insurance policy, to support iintoo’s equity protection undertaking as further specified and described in the confidential offering materials of iintoo. Everest Insurance® is not a sponsor or promoter of any offering described herein.

The Terms of Use regulating your use of the Platform can be found at:
The Platform’s Privacy Policy can be found at:
By accessing this site and any pages thereof, you agree to be bound by our Terms of Use and Privacy Policy.

About Everest®
Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), provides reinsurance to non-life insurers in Europe. Everest Insurance® refers to the primary insurance operations of Everest Re Group, Ltd., and its affiliated companies which offer property, casualty and specialty lines insurance on both an admitted and non-admitted basis in the U.S. and internationally. The Company also operates within the Lloyd’s insurance market through Syndicate 2786. In addition, through Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized by the Company and third party investors that provide reinsurance for property catastrophe risks. Additional information on Everest Re Group companies can be found at the Group’s web site at

© 2020 iintoo Investments Ltd. All Rights Reserved.