I am sure that many markets will hit some big bumps of oversupply in the coming months/years but if the statistics below are correct, the longer term story is still very exciting...for 8-10 years at least.
- Supply and demand trends have looked compelling. The Department of Education projects there will be 24.1 million full- and part-time students attending the nation's colleges in 2021, up from 21.8 million this year and 16.9 million in 2003. On-campus construction hasn't kept up.
- Between 2009 and 2013, the number of dorm beds increased by about 151,000 to 3 million. During that same period, full-time enrollment increased by 606,000 to 13.3 million, according to the Department of Education.
I think the broader multifamily market has similar issues. A great deal of money is chasing a small pool of deals/land so we are bound to see "corrections" occurring in these hot markets along the way.
More on Student Housing over here at MFE's Concept Community including some exclusive research that will be rolled out next week in Las Vegas at the MFE Conference.
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