Best Student Housing | Top 8 Types For Investors

With consistent year-on-year increases, the student housing market remains a rewarding and lucrative sphere for investors and property managers.

That said, choosing the right investment can be confusing if you’re new to the sector. You first have to understand the best types of student housing, which is needed to achieve success with student properties and align them with student preferences as they evolve.

Without further delay, let’s explore the best student housing, what makes each a valuable investment, and which option would be best for your investment portfolio.

On-Campus Housing

On-campus student housing offers students both convenience and a built-in community. Students have access to each other and other on-campus activities. It’s a popular option that sees steady demand, as students are guaranteed to need housing close to their classes and campus resources.

On the other hand, lease terms are less flexible, and university campus policies can limit development options.

Apartments

Campus-affiliated student apartments provide students with both privacy and independence while staying close to classes and campus amenities.

This type of housing is popular among upperclassmen and graduate students who are looking for quieter, more self-sufficient living environments. Because these apartments offer both convenience and autonomy, they usually command higher lease values.

Dorms

Dorms remain a staple of college life, providing students with essential amenities and affordable living spaces. They also foster a strong sense of community and help students acclimate to college life, a great benefit for first-year students and international students who feel isolated.

While dorms generate less rental value per unit, their consistent, near-full occupancy rates make them a stable and attractive investment.

Remember to factor in maintenance costs and dorm updates to stay competitive with newer housing options.

Sorority and Fraternity Housing

Sororities and fraternities are a more niche investment, but they’re surprisingly stable. This is especially true for major universities with large, active Greek organizations, like Florida State University.

One of the biggest benefits of Greek life housing is the built-in demand. Sororities and fraternities frequently rent out the same houses for years and often handle much of the property management themselves, reducing the burden on owners and management companies.

However, these rentals do come with higher wear-and-tear costs. A regular maintenance schedule is crucial.

Off-Campus Housing

Living off-campus offers more flexibility for investors and students. Off-campus housing tends to attract upperclassmen and graduate students looking for more independence because these properties are less tied to university regulations.

Apartments

Off-campus housing can range from luxury units to affordable multi-bedroom apartments. The appeal of living off-campus in an apartment is mostly connected to the convenience of apartment living and the lack of limitations imposed by campus rules.

Off-campus housing is attractive in urban areas where public transportation makes commuting to campus easy.

Amenities like gyms, pools, laundry facilities, and study lounges will help your off-campus housing stand out even in the most competitive markets.

Shared Houses

House shares are popular in areas with tight and expensive housing markets. Investors benefit from renting out individual rooms while creating more affordable student housing opportunities for students who can’t afford an apartment alone.

Shared housing, however, requires more intense property management to address maintenance issues and resolve roommate conflicts. Clear lease agreements and regular property inspections are necessary to prevent escalating issues.

Near-Campus Housing

Near-campus properties are properties within walking or biking distance to campus. They offer the independence of living off campus with the convenience of proximity to campus grounds.

These properties tend to have lower vacancy rates, especially in desirable neighborhoods with restaurants, grocery stores, and entertainment.

Apartments

Near-campus apartments are highly sought after. Many offer benefits like secure entry, fitness centers, and study lounges. These properties often experience less seasonal vacancy because the location is appealing to students throughout the year.

Modernizing units and enhancing communal spaces can further boost property value and foster a sense of community among tenants.

Purpose-Built Housing

Purpose-built student housing (PBSA) is student housing designed with student needs in mind. It offers features like roommate-matching services and flexible leasing.

These properties perform well in rapidly growing student populations with limited on-campus housing. While the initial investment can be high, steady occupancy and predictable turnover make PBSA a strategic investment.

Room Rentals

Renting out individual rooms provides students with an affordable housing option. This strategy works well in areas with limited dorm availability or for international students seeking short-term rentals.

All-inclusive rent packages that cover utilities and internet are popular in this niche.

On-Campus vs. Off-Campus Student Housing: Cost Differences

On-campus housing typically has lower upfront costs for students, but off-campus options provide better long-term value for investors.

On-campus housing might come with additional fees for meal plans or activity costs, whereas off-campus housing attracts budget-conscious students, which brings consistent occupancy rates, competitive rental pricing, and long-term investment stability.

Weigh the predictable demand for on-campus housing against the potential for higher returns and greater flexibility with off-campus properties before settling on an investment.

What Makes an Optimal Student Housing Investment?

The best student housing balances location, safety, amenities, and lease structures. The most resilient properties cater to student preferences while maintaining financial sustainability for investors.

Keep this in mind when weighing investment opportunities:

• Safety and Location: Properties close to campus, public transportation, and essential services outperform distant units. Safety features like secure entry systems, surveillance cameras, and well-lit common areas can significantly boost desirability.
• Amenities and Lease: Amenities like high-speed internet, study spaces, social areas, and flexible lease options will help you align better with the school year and reduce summer vacancies. Also, include furnishings and offer maintenance services to attract and retain tenants.

Conclusion

Success in the student housing market doesn’t happen by accident. Understanding the various types of properties and their respective advantages is critical in choosing the investment option that will grow your student housing business.

The best student housing investment is one that provides long-term value to the students in your investment region. To do that, you need to stay informed and responsive to evolving student lifestyles and industry trends.

That’s where College House comes in. We provide powerful analytics and intelligence solutions that pinpoint student housing niches in high demand. Book a demo today!