The student housing market remains a promising investment category for 2025. College applications are rising, and thus, the demand for student housing is increasing too.
That said, several noticeable trends in college student housing impact the type of housing that students demand. Student housing developers and investors should take note of these trends.
Do you want to know what they are? These are the top 7 trends in college student housing that are shaping the market.
Student housing demand remains high in 2025 for local students and international students.
Because of the increased demand for modern and efficient student housing, development and investment opportunities in the student housing market are also increasing.
Purpose-built student accommodation (PBSA) continues to dominate other types of student accommodation.
College enrollment in the US remains high. However, American students are not the only ones looking for local student accommodation. The US is the top destination for internationally mobile students. This international student market further strengthens the student housing demand.
North America continues to dominate the global student housing market. With college enrollments high, so is the demand for student housing. Opportunities to invest in student housing are increasing accordingly. While all types of accommodation remain in demand, PBSA units dominate this market.
If you want to know more about the current student housing market, read our latest student housing market report. It offers investment insights into the current student housing market situation.
Students have become more discerning in their student housing choices and more assertive about what they want. This is shaping the market. Developers are rising to meet the increased demand for housing and to give students the accommodations they want.
Lower student rent prices, multi-functional and communal living arrangements, and increased demand for innovative tech are some of the emerging trends in student housing.
Common App is an undergraduate college admission application that connects students to more than 1,000 schools across the U.S.. Their latest application data showed that applications are on the rise and that applicants from lower-income ZIP codes exceed their wealthier peers.
The student population is a part of the general population. As such, their socioeconomic realities remain the same regardless of academic status. Therefore, many students need more affordable housing options. That said, they still require functional amenities.
Another one of the trends in student housing is the demand for mixed-use developments. This entails a combination of residential units and educational facilities, perhaps even recreational amenities, in one building.
This adds to the convenience factor as it reduces the need to leave campus and commute. Older, underutilized student housing structures can sometimes be refurbished and repurposed in this way.
Student accommodation is no longer just a place to study and sleep. Student housing design trends like co-living arrangements and community-based spaces meet the high demand for student accommodation that supports interaction.
While private rooms may still be preferred for sleeping, areas like kitchens and living areas are communal. Shared recreational areas include things like an entertainment center, ping pong table, and the like. Amenities like fitness centers and pools are also highly sought after.
While off-campus housing is still popular, graduate students are showing a growing interest in on-campus housing. We’re not talking about the conventional residence hall, but rather a student housing space that offers all the convenience of a home away from home.
On-campus housing offers several benefits. It offers convenience and proximity to classes and lecture halls. Campus housing ties in with sustainability as transport to and from campus is not required. It’s suitable for lower-income students who cannot afford daily transportation to and from their classes.
Lastly, on-campus housing can foster campus community spirit among the student population, as it encourages socialization amongst the student body.
One of the more interesting trends in student housing is the growing popularity of flexible leasing options. This is common among students enrolled in short courses or studying part-time.
Student housing designated for short-term rentals on or near college campuses offers good investment opportunities. However, we recommend that you first read our guide to the short-term rental mistakes to avoid.
In recent years, there has been growing interest in sustainability and technology. We examined research into attitudes towards sustainability in the US, in which respondents included college student-aged Americans.
As many as 38% of the respondents believed that sustainability/eco-friendliness should not be a luxury. The same number of respondents believed that they could tackle environmental problems through their daily behavior.
It’s no surprise that student housing that is affordable yet sustainable and eco-friendly is becoming popular. Many student housing units now incorporate eco-friendly materials and renewable energy. This is one trend that is sure to become the norm as more students demand this from their accommodations.
In 2023, a thesis paper from the Department of Environmental Studies at the University of Nebraska-Lincoln addressed the issue of college students’ perspectives on sustainable transportation use.
It indicated that distance and safety were some of the most important factors influencing students’ sustainable transportation use. Students’ ideas on how to encourage more sustainable transportation use included themes like better infrastructure.
Students’ interest in sustainable transportation has only increased since then. With more students showing concern for the environment, it’s understandable that there’s a growing need for proximity of student accommodation to transit and urban centers.
Most college students today are members of Generation Z. Therefore, trends in college student housing reflect their worldviews and the interests close to their hearts. Gen Z grew up surrounded by technology. So, it comes as no surprise that many trust AI over humans.
This means that most of the younger US population is comfortable with, and probably prefers, more AI-driven technologies in their daily lives.
Student housing developments are stepping up to fill this need with Smart building management. Student property management services are looking for ways to incorporate AI-powered automation. Investors in student housing take note of this demand for AI-powered innovations in the student housing market.
What does all of this mean for student housing investors? Studying student housing market data guides investors on the economic feasibility of their investments. Knowledge of the trends in college student housing offers insights into the opportunities that might experience the most growth.
Therefore, both are necessary to invest in student housing confidently.
As our key insights into student properties for investors showed, the global student housing market is expected to rise to 18.72 billion USD by 2032. North America is dominating that market. It is, indeed, a potentially lucrative investment.
However, the above trends show that, within that market, affordable and multi-purpose student accommodation developments that support sustainability yet embrace innovation show the most promise.
These are vital clues for investors keen on exploring opportunities in the student housing market.
Markets fluctuate, and investment trends come and go. This can lead to investor uncertainty. However, with the most recent data and expert insights into relevant trends, investors can make more informed and confident decisions about current housing investment opportunities.
That is why student housing investors and developers trust College House for the information they need. We offer the latest student housing market data and intelligence, as well as insights into student housing trends, preferences, and needs. Book a demo today to see our data in action.
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