student housing construction may increase on smaller campuses

Investment in student housing construction projects have been steadily increasing from under $3 billion five years ago to $8 billion last year.

One of the reasons for the continued increase in such housing is the continued increase in college-age students.

According to the National Center for Education Statistics, the number of college age persons in the U.S. is currently pegged at 20.4 million, compared with 6.6 million in 1990.

In response, according to the apartment market data site Axiometrics.com, an average of 48,000 new beds has been constructed in the last four years.

Continuing the trends, developers this year expect to see space built for more than 42,000 beds, a significant increase from 2010 when the total new university and college bed count stood at 24,600 beds.

But, according to Sean Lyons, founding partner of the Chicago-based Triad Real Estate Partners, where the new housing projects will be built is changing. Writing for Forbes.com, Lyons said he us seeing more increased construction on the campuses of smaller liberal arts institutions, otherwise known as Tier 2 schools.

These new projects are marked by two other trends: a substantial increase in foreign investment, and a move to make such properties more diverse.

Industry analysts say such extras as retail space, coffee shops, restaurants, fitness facilities, and even dog parks are becoming regular features of new student housing complexes.

By Garry Boulard