In recent years, the demand for student housing has grown significantly. With more and more students opting for higher education and fewer institutions being able to provide more on-campus housing, small-scale developers have a unique opportunity to tap into this lucrative market.
These properties, situated near campuses, offer amenities that cater to students’ individual preferences and requirements. Let’s explore how small-scale developers can maximize their profits by capitalizing on the ever-growing need for student housing.
Recognizing the Potential of Student Housing
The demand for student housing has skyrocketed in recent years, creating a prime opportunity for small-scale developers to step in. As the average expense of on-campus housing increases, so does the preference of students who want to live close to their schools. However, the market is currently failing to meet the demand. 8.6 million students needed help finding affordable housing in 2023. With this gap in market supply, small-scale developers who recognize the potential of student housing can cash in on an industry that continues to grow.
Understanding Student Housing Needs
Catering to Student Preferences: Students often prioritize proximity to campus, safety, affordability, and access to amenities. Features such as communal study areas, modern furnishings, fitness centers, and recreational spaces can elevate the appeal of your development while enhancing the overall student experience.
Selecting Prime Locations: Location is crucial in attracting student tenants, as students want to live near their universities. Prime locations close to universities or colleges are in high demand. Small-scale developers should consider acquiring land or properties near education institutions to ensure a steady stream of potential tenants. Proximity to public transportation, libraries, and other essential facilities can further enhance the appeal of the housing options.
Designing for Student Living
Optimizing Space, Privacy, and Functionality: Compact and functional designs that maximize space utilization can offer a cozy but private environment within smaller units. Whereas on-campus housing is more likely to have dorm arrangements, off-campus housing can provide private rooms for those who prefer a space.
Building Community and Collaboration: Student housing developments should prioritize social spaces such as parks, basketball courts, and amphitheaters to create a positive living environment that enhances the overall experience for students, making the housing option more attractive and desirable. Shared amenities such as study rooms, game rooms, communal kitchens, and laundry facilities can enhance the overall living experience and attract students seeking a sense of community.
Prioritizing Affordability: Many students consider affordability a significant factor when choosing housing. Small-scale developers can gain a competitive edge by offering reasonably priced accommodation without compromising quality. Implementing cost-effective construction methods and utilizing sustainable materials can keep expenses in check and make the housing units more affordable for students.
Incorporating Tech-Savy Amenities: In today’s digital age, providing amenities that cater to the digital lifestyle of modern students is crucial. Beyond studying, many college courses are remote or hybrid, so accessing resources through reliable, high-speed internet is vital for student housing developments. Small-scale developers need to integrate technology into housing, including high-speed internet, smart home features, and convenient online leasing processes to meet the needs of students.
Exceeding the Student Housing Demand
The demand for student housing continues to rise, giving small-scale developers a golden opportunity to capitalize on this booming market.
At Allison Ramsey, we understand the potential of small-scale developers to impact the student housing market. Our various building types are designed to exceed student housing expectations and positively impact their college experience. Let’s connect and make it a success.