Student housing construction dips in the first quarter of 2024

Investment in college dorms dipped slightly in the first quarter of 2024, but remains higher than a year ago. The Bureau of Economic Analysis reports a 0.1% decrease to a $4 billion annual rate, following a previous quarter's increase. While still below pre-pandemic levels, this investment is 10.4% higher compared to the first quarter of 2023.

College enrollment growth after the Great Recession fueled a surge in dorm investment. This trend reversed during the Coronavirus pandemic, with restrictions on in-person learning causing a significant drop. Investment fell from $4.47 billion in late 2019 to $3.01 billion in mid-2021, mirroring a decline in college enrollment.

With the pandemic receding and a return to in-person learning, student housing investment is on the rise. This bodes well for the future of the college dorm sector.

While construction may have dipped in 2024, preleasing for student housing continues to grow at record pace. While rent growth has remained at a solid four percent, preleasing reached 54.5% in January and surpassed 61% in February. This is more than 15% above the five-year average.

The U.S. is ill-prepared to provide adequate housing for the growing ranks of older people, according to a report from Harvard University’s Joint Center for Housing Studies. Over the next decade, the U.S. population older than 75 will increase by 45%, growing from 17 million to nearly 25 million, with many expected to struggle financially.

Yale University breaks ground on the nation's largest Living Building student housing complex

University Buildings | Dec 8, 2023

Yale University breaks ground on nation's largest Living Building student housing complex

A groundbreaking on Oct. 11 kicked off a project aiming to construct the largest Living Building Challenge-certified residence on a university campus. The Living Village, a 45,000 sf home for Yale University Divinity School graduate students, “will make an ecological statement about the need to build in harmony with the natural world while training students to become ‘apostles of the environment’,” according to Bruner/Cott, which is leading the design team that includes Höweler + Yoon Architecture and Andropogon Associates.

Almost a million apartment units are currently under construction in the U.S., says Apartment List.

MFPRO+ News | Dec 7, 2023

7 key predictions for the 2024 multifamily rental housing market

2024 will be the strongest year for new apartment construction in decades, says Apartment List's chief economist.

Codes and Standards | Dec 7, 2023

New York City aims to spur construction of more accessory dwelling units (ADUs)

To address a serious housing shortage, New York City is trying to get more homeowners to build accessory dwelling units (ADUs). The city recently unveiled a program that offers owners of single-family homes up to nearly $400,000 to construct an apartment on their property.