Student Housing

As foreign and institutional investors seek portfolio diversification capital is likely to continue flowing into student housing properties.

Investors have historically demanded higher yields—and lower prices—for student housing properties compared to apartment properties overall.

“We love student housing. We’re very big in student housing across the country,” says Jeff Holzmann, managing director of iintoo Investments Ltd., a New York City-based network for real estate investing.

In many cases, new properties close to campus are drawing students away from properties farther out.

With its stock trading at a discount, it had been difficult for the REIT to get the quick access to capital needed for new development.

The project was too slow to cut rents and had trouble attracting students earlier this year because it was still under construction.

Adelman discussed what's behind the recent slowdown in construction and the most likely markets for growth.

Some companies that provide student housing say they have seen a shift away from over-the-top amenities that were popular with off-campus renters a few years back.