Cushman & Wakefield released its latest outlook on student housing, including its Top Five predictions for this asset class in 2024.
In 2023, positive trends such as steady, high occupancy and rent growth – as well as signs that operating expenses and construction cost inflation began to wane – were tempered by the headwinds brought on by rising interest rates in the summer months. This resulted in a suppressed level of dealmaking in student housing over the past year.
Looking forward to 2024, cautious optimism surrounds the activity in the capital markets, and despite persisting challenges, robust fundamentals for student housing should prevail.
Cushman & Wakefield’s Top Five predictions for this sector include views on levels of market participation; demand for student housing in comparison to other asset classes; resiliency for the sector in the face of potential distress; capital flows potentially favoring student housing; and gaps in equity.
Additionally, Cushman & Wakefield includes its “Game Plan” strategy for potential student housing investors, taking stock of deal timing, being opportunistic, targeting flagship locations, and managing expectations while being creative to get ahead.
Dive deeper into Cushman & Wakefield’s student housing predictions here.