Invest in Student Housing: Avoid Costly Mistakes by Timing Your Entry in These 4 Key Periods for Maximum Returns

The student housing sector is a good choice for investors who want to diversify their real estate investment portfolio.

Doing so might seem rather simple: Just time your investment with the Academic Year, which usually starts in August or September and ends in May or June. However, it isn’t as easy as that.

Some colleges operate on systems with semesters or even trimesters. And there are several other factors to consider, too. So, when is the best time to look for student housing as an investor? Don’t despair. We explain it all in the guide below.

When Do Students Begin Looking for Housing?

Many public and private colleges and universities operate on a two-semester system (fall and spring).

After a winter break, the spring semester usually starts in early to mid-January and ends in early to mid-May. However, it can get even more complicated.

Some colleges now use a quarterly system, and a growing number of academic institutions use a trimester system, which combines elements of both. Take this into consideration when looking at peak enrollment periods.

March-May: The peak season for student accommodation leasing in the US can start as early as April. Students who look for housing ahead of the next academic year will ensure they get the best spots.

June-September: Most students are on summer break. However, some colleges do not observe a summer break. In those that do, optional summer classes allow students to continue their studies.

October-November: The peak leasing season can sometimes continue until November. These students may have waited until the Fall semester to secure student housing.

December-February: Students secure housing during the winter months ahead of the spring semester or just after the start of the spring semester.

The Best Months to Purchase Student Housing

When is the best time to look for student housing? The demand is seasonal and peaks when college students arrive to start their academic year or semester. However, you need to have made your property investment before then to get the most out of it.

Should You Buy During the Off-Season?

Buy during the off-season months, and you’ll be ready to reap the benefits when peak leasing season starts at the beginning of the academic year.

That said, student housing demand can also increase at different times throughout the year. The type of courses students are taking can affect when they start looking for student housing. Understanding enrollment in college is the key to understanding student housing and leasing timing.

What to Consider When Investing in Student Housing

Before making investment commitments, consider the following factors. They can help you determine the best time to look for student housing.

Market Trends and Seasonal Demand

The student accommodation market is heavily influenced by seasonal demand and market trends. Trends determine more than just general housing demand.

They influence the types of student housing in demand.  Read our insights about the trends shaping the future of student housing to learn more.

Rental Price Fluctuations

If demand increases in certain areas where supply does not meet the demand, prices can rise. The converse is true where supply outstrips demand.

Student property rental prices can also fluctuate throughout the year in line with seasonal demand and availability.

Competition with Other Investors

The student property sector shows continuous growth and is more resilient than other property markets. This is why investors view it as a good opportunity.

However, the other side of that coin is high competition with other investors. Keep abreast of market data and trends to gain a competitive edge.

Tips for Finding and Securing Student Housing Investments

Investing in student properties can appear very complicated to novice investors. Follow these tips to find and secure the best student accommodation investment opportunities.

Create a Plan

Plan your student property investments. There are several ways to invest in real estate in the student housing sector to suit all investment styles, risk profiles, and budgets. Consult an investment advisor and research the market before making any final decisions.

Set a Budget

Set a budget that realistically reflects your financial situation. With careful planning, it is possible to invest in student housing on a budget.

That said, be prepared to make a more significant investment if you’re looking for a stable monthly income stream.

Consider Multiple Properties

There are different types of student housing with unique features that make them attractive to students. We recommend diversifying your investment portfolio with different property types.

Apartment Complexes

Student apartment complexes may be on or off-campus. On-campus college apartments may be prioritized for senior students. On-campus apartment-style housing may feature shared amenities.

Dormitories/Residential Halls

Student dormitories or residential halls are usually situated on campus. First-year students will typically be housed in dormitories. Dormitories may contain a mix of single and double rooms.

Houses

Houses near the college or university may be repurposed for student living. They could mirror the layout of sorority or fraternity houses (usually with two stories and multiple bedrooms) on campus.

Purpose-Built Student Accommodation

Purpose-built student accommodations are designed and built to support student living. These may be studio-type units or cluster flats, but they are usually situated near campus.

Students are keen on this type of accommodation because they typically offer good security, modern technologies, plus a range of amenities and leisure facilities.

Weigh the Pros and Cons of Each Area.

Let’s say that a new college is being built. Local demand for student housing could increase. That is a pro for developing new purpose-built student housing in the vicinity or possibly investing in upgrading unused local housing.

Now, let’s suppose that enrollment at a particular institution has waned. Demand for nearby student housing may decrease. They may have a surplus of housing vs demand. That is a con for developing new student housing facilities in that area.

These are just examples. Many factors influence the pros and cons in specific areas. Read about the vital questions to ask when underwriting student housing opportunities to know what factors to consider.

Conclusion

When is the best time to look for student housing? College enrollment periods and leasing peak seasons will help you understand when to invest in student housing. Actionable data, enrollment trend insights, and up-to-date market reports are the best tools for getting investment timing right.

College House provides advanced data analytics, reports, and insights for the student housing industry. This helps student housing developers, investors, property owners, and property managers make more informed decisions.

Book your demo today and make the data work for you.