Investment in college dorms dipped slightly in the first quarter of 2024, but remains higher than a year ago. The Bureau of Economic Analysis reports a 0.1% decrease to a $4 billion annual rate, following a previous quarter's increase. While still below pre-pandemic levels, this investment is 10.4% higher compared to the first quarter of 2023.
College enrollment growth after the Great Recession fueled a surge in dorm investment. This trend reversed during the Coronavirus pandemic, with restrictions on in-person learning causing a significant drop. Investment fell from $4.47 billion in late 2019 to $3.01 billion in mid-2021, mirroring a decline in college enrollment.
With the pandemic receding and a return to in-person learning, student housing investment is on the rise. This bodes well for the future of the college dorm sector.
While construction may have dipped in 2024, preleasing for student housing continues to grow at record pace. While rent growth has remained at a solid four percent, preleasing reached 54.5% in January and surpassed 61% in February. This is more than 15% above the five-year average.
RELATED:
- March student housing preleasing in line with last year
- Student housing market expected to improve in 2024
- Student housing preleasing continues to grow at record pace
Related Stories
Multifamily Housing | Jan 19, 2023
Editorial call for Multifamily Affordable Housing project case studies - no cost to submit!
Building Design+Construction will feature a roundup of "Multifamily Affordable Housing" projects on BDCnetwork.com.
Products and Materials | Jan 18, 2023
6 innovative products for multifamily developments
Here are six innovative products for various multifamily developments, including a condominium-wide smart electrical system, heavy-duty aluminum doors, and prefabricated panels.
Codes and Standards | Dec 29, 2022
New York City multifamily owners concerned over fires caused by e-bikes
In 2022, there have been nearly 200 fires and six deaths in New York City caused by lithium-ion batteries used in mobility devices such as electric bikes and scooters.
Multifamily Housing | Dec 21, 2022
Bay Area school district builds 122 affordable apartments for faculty and staff
The 122 affordable apartments at 705 Serramonte, Daly City, Calif., were set aside not for faculty and staff at Jefferson Union High School District.
Cladding and Facade Systems | Dec 20, 2022
Acoustic design considerations at the building envelope
Acentech's Ben Markham identifies the primary concerns with acoustic performance at the building envelope and offers proven solutions for mitigating acoustic issues.
Sponsored | Multifamily Housing | Dec 14, 2022
Urban housing revival: 3 creative multifamily housing renovations
This continuing education course from Bruner/Cott & Associates highlights three compelling projects that involve reimagining unlikely buildings for compelling multifamily housing developments.
Multifamily Housing | Dec 13, 2022
Top 106 multifamily housing kitchen and bath amenities – get the full report (FREE!)
Multifamily Design+Construction's inaugural “Kitchen+Bath Survey” of multifamily developers, architects, contractors, and others made it clear that supply chain problems are impacting multifamily housing projects.
Student Housing | Dec 7, 2022
9 exemplary student housing projects in 2022
Production continued apace this year and last, as colleges and universities, for-profit developers, and their AEC teams scrambled to get college residences open before the start of classes.
Student Housing | Dec 7, 2022
Cornell University builds massive student housing complex to accommodate planned enrollment growth
In Ithaca, N.Y., Cornell University has completed its North Campus Residential Expansion (NCRE) project. Designed by ikon.5 architects, the 776,000-sf project provides 1,200 beds for first-year students and 800 beds for sophomore students. The NCRE project aimed to accommodate the university’s planned growth in student enrollment while meeting its green infrastructure standards. Cornell University plans to achieve carbon neutrality by 2035.
Multifamily Housing | Nov 22, 2022
10 compelling multifamily developments debut in 2022
A smart home tech-focused apartment complex in North Phoenix, Ariz., and a factory conversion to lofts in St. Louis highlight the notable multifamily developments to debut recently.
