It could be stronger than anyone thinks...
Recently, CBRE hosted a roundtable with its student housing experts for a State of the Market. Read on to learn what the experts had to say about this niche property segment.
Jaclyn Fitts, executive vice president of CBRE Capital Markets, Student Housing, discussed four demand drivers for off-campus student housing.
International Enrollment – According the Institute of International Education survey, 92% of international students have remained in the United States. There are approximately 1.1 million international students, meaning over 1 million of these students continued to take their classes – even though online based – in the U.S. rather than returning to their home country. Additionally, approximately 280,000 of the 350,000 Americans studying abroad during the spring semester returned home, limiting the potential decline in international enrollment for Fall 2020.
According the Institute of International Education survey, 92% of international students have remained in the United States.
Freshman Enrollment and Retention Expected to Decline
Roughly 10% of prospective high school graduating seniors stated that they no longer plan to attend college in the fall, according to a survey conducted by Simpson Scarborough. The same survey reported that, when given the option to continue their education online or return to campus for in-person instruction, 85% of current college students said they would return to campus.
Roughly 10% of prospective high school graduating seniors stated that they no longer plan to attend college in the fall, according to a survey conducted by Simpson Scarborough.
De-Densification
An April 27th survey from the Association of College and University Housing Officers demonstrated that 70% planned for or are considering de-densification, or reducing bed counts for housing on campus. According to a recent Student Housing Business survey, 79% of on-campus housing officers indicated that their institutions were planning on keeping an existing on-campus housing facility offline for a potential quarantine space during the 2020-2021 academic year. CBRE believes de-densification of on-campus housing will help to offset any potential enrollment declines and allow the off-campus student housing market to remain highly occupied.
CBRE believes de-densification of on-campus housing will help to offset any potential enrollment declines and allow the off-campus student housing market to remain highly occupied.
Unemployment's Positive Impact on Higher Ed
As unemployment increases, so does enrollment growth at public institutions. This is commonly attributed to two factors: as people with lower education levels face a higher degree of unemployment, especially in recession times, they seek post-secondary education for the stabilized career path and lower unemployment levels it provides. Additionally, college graduates frequently seek higher graduate education in the face of high unemployment levels. Given the U.S. is currently facing record unemployment levels, especially among the population with lower levels of education, CBRE anticipates this will propel college enrollment.
Given the U.S. is currently facing record unemployment levels, especially among the population with lower levels of education, CBRE anticipates this will propel college enrollment.
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