Enrollment in College: Reveal the Powerful Impact on Real Estate Growth & the Projected 16.8 Million Students by 2031

Enrolling in college is a major commitment to higher education. With that commitment comes a host of needs, including housing. Remember to watch college enrollment rates and current trends. This way, you can make your student housing investment portfolio work for you.

Fortunately, we gathered data to help you answer, what is enrollment in college? How does that affect property investors? What should you expect from college enrollment in the next few years?

What Is College Enrollment?

College enrollment is when a potential student officially becomes part of a college or university. Candidates accept an admission offer, pay a deposit, and register for classes.

Enrollment is the final step in the college enrollment process. When students enroll, they officially declare their commitment to attend college.

There are two types of college enrollment: full-time and part-time.

Full-time students commit to more credit hours per semester. Part-time students are either working professionals or adult learners. They take fewer courses with longer study terms.

Understanding the difference between full-time and part-time students is crucial. Both groups have different needs. Full-time students are more likely to seek dedicated student housing. Part-time students might only need short-term rentals during exam periods.

You can use this information to make smarter decisions. Data can help your property management business meet regional student housing demand.

Is College Enrollment Binding?

After students accept admission and pay their student fees, they are officially enrolled. This commitment is considered binding for the academic term.

Yet, policies differ depending on the college prospective students apply to. Some colleges allow withdrawals under specific circumstances. These may include personal emergencies or financial difficulties.

Others also have deferral options. Said options let admitted students delay their start date without losing their place in their program.

Students can also commit to a binding early decision enrollment program. This differs from regular enrollment.

When students apply using a college’s binding early decision program, they commit to attending the school if accepted. They have to withdraw all other college applications and attend the school they enrolled in using the early decision program.

Enrollment terms and agreements are very important. They help students avoid potential penalties.

They also provide insights into market stability in various regions. For example, a college with high rates of binding enrollment tends to have more predictable student retention. This means Lower turnover risks in student housing investments.

What Are the Implications of College Enrollment for Student Housing Investors?

Understanding college enrollment and enrollment patterns as a property investor is a must if you hope to grow your student housing business.

A college with a high number of students comes with a strong demand for student housing. The opposite is also true: declining enrollment rates can show lower demand. You will have to adjust your investment strategies to see a return.

Since student housing demand is so closely linked to enrollment and student population trends, college enrollment statistics will help you prepare for student housing in 2025 and beyond.

How Enrolled Students Affect Property Managers

Matching your leasing cycles with regional academic calendars will help you match housing demand with housing availability. This reduces vacancy rates, which is integral to making the most of every property on your portfolio. A vacant property exhausts resources without adding to your business's bottom line.

When structuring rental agreements, consider the peak enrollment periods, summer housing needs, and international student arrivals. Growing enrollment rates also correlate to higher property appreciation and demand, both of which can increase ROI.

Changing enrollment demographics, like increased online learning or hybrid course models, will also affect housing needs.

While traditional dormitory-style housing remains essential, online and hybrid college programs could increase demand for flexible housing options. By understanding the incoming class, you can diversify your student housing options to meet the shifting demand of schools.

College Enrollment Statistics

While there was a decline in higher education enrollment between 2010 and 2021, the National Center for Education Statistics projects a 9% increase by 2031 with a total of 16.8 million enrolled students.

These fluctuations are primarily driven by economic stability, federal student aid policies, and shifting career preferences. States with higher population growth are also seeing a higher number of students during the enrollment process.

This is only the tip of the iceberg. These college admission statistics can help you price rental properties appropriately and get properties in high-demand areas.

College Enrollment Rates by Institution Type

Public institutions consistently hold the majority of all enrolled students, with an average of 70%. In 2025, there are projected to be 14.32 million students enrolled in public higher education. Private institutes make up a projected 5.25 million students.

Community colleges, which typically offer two-year associate degrees, saw a decline in student enrollment starting in 2010. Enrollment steadily sank until 2022 before seeing a slight increase in 2023. 2024 saw even more growth, and you can expect to see this modest growth continue for the foreseeable future.

The resurgence in community colleges has increased the demand for more affordable student housing options near these institutions.

Keep an eye on state and federal funding policies. Financial aid programs can significantly impact enrollment numbers at public and community colleges because students in these demographics often go where higher education is more cost-effective.

College Enrollment Rates by University

A handful of colleges consistently see large numbers of prospective students. These colleges are almost always guaranteed high housing demand, making them appealing locations for property investors.

Here are some of the largest U.S. universities by enrollment rates:

1. Arizona State University (ASU): 152,812 students
2. Liberty University: 140,000 students
3. Texas A&M University: 79,114 students
4. University of Central Florida (UCF): 69,818 students
5. University of Florida (UF):  69,464 students
6. Ohio State University: 66,901 students
7. University of Illinois Urbana-Champaign: 59,238 students
8. Florida International University (FIU): 54,085 students
9. University of Texas at Austin: 53,864 students
10. Georgia State University: 52,400 students

Expanding enrollment at these universities could result in exciting new opportunities for development. It’s always worth keeping an eye on these markets.

College Enrollment Rates by Degree

Between 2021 and 2024, there have been notable shifts in enrollment patterns across different degree programs:

• Associate Degrees: Enrollment in associate degrees rebounded for the first time since the pandemic in 2020. A particular focus has been on career-focused fields like healthcare, information technology, and skilled trades.

• Bachelor’s Degrees: While enrollment declined after the pandemic until 2023, it has increased, particularly in STEM (science, technology, engineering, and mathematics) programs. Business and healthcare-related programs continue to attract high enrollment.

• Master’s Degrees: Graduate enrollment remains stable, with steady demand in business administration (MBA), data science, cybersecurity, and public health programs.

• Doctoral and Professional Degrees: Enrollment in doctoral programs saw modest growth, with increasing interest in law, medical, and Ph.D. programs. The demand for research, healthcare, and academic professionals has kept these programs competitive.

College Enrollment Rates by Ethnicity

Based on the most recent studies, this is what college enrollment rates based on ethnicity look like:

• Hispanic/Latino Students: Enrollment among Hispanic students has continued to rise, now making up a 33% enrollment rate. This growth reflects increasing college accessibility and targeted recruitment efforts at Hispanic-serving institutions (HSIs).

• Black/African American Students: Enrollment has shown signs of stabilizing in 2023-2024, with an average of 36% enrollment rate. HBCUs (Historically Black Colleges and Universities) have played a key role in maintaining enrollment rates.

• White Students: White student enrollment has steadily decreased over the past decade, reflecting broader demographic shifts. Despite this, white students still make up the largest enrollment rate in higher education at 41%.

• Asian Students: Asian student enrollment has remained stable, with strong representation in STEM and business programs. International students from Asian countries also contribute significantly to U.S. college enrollment figures. Both contribute to an enrollment rate of 61%.

• Indigenous and Other Minority Groups: Native American and Indigenous student enrollment rates remain lower than those of other groups, at 26%, but institutions have introduced new scholarship opportunities and support programs to improve accessibility.

College Enrollment Trends

Our findings show a positive shift in enrollment trends, making it an opportune time for investors to assess and possibly expand their portfolios.

Undergraduate Growth

Freshman enrollment has experienced a notable rise, growing by over 5% in the recent fall term.

Community colleges, in particular, saw a significant increase, adding tens of thousands of new students. This surge may lead to heightened demand for affordable housing options near these institutions.

Student Characteristics

The evolving demographics of the student population, including increased diversity and a higher percentage of non-traditional students, suggest a need for varied housing solutions.

Consider adding amenities and services that cater to a broad spectrum of student preferences and requirements, like single-family homes and short-term leases.

Regional and State Differences

Enrollment trends can vary by region and state. Some areas may experience large growth in student populations, while others may see declines.

Study local enrollment trends, including the number of students and waitlisted students. The application process and school term will also help you determine the periods of student housing demand.

Conclusion

College enrollment trends are essential for property investors. Understanding the nuances of enrollment data lets you align your investment to meet the evolving needs of the student population.

Stay up to date with the student housing market using College House. Our data-driven analytics have tracked over three thousand properties. We’re confident we can help you grow your student housing business.

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