FAQs

What factors contributed to the decline in private fixed investment in student dormitories?

The decline in private fixed investment in student dormitories can be attributed to elevated interest rates and the impact of the COVID-19 pandemic on college enrollment.

How has college enrollment been affected in recent years?

College enrollment saw a decline of 3.6% in the fall of 2020 and a further decrease of 3.1% in the fall of 2021, according to the National Student Clearinghouse Research Center.

Is there optimism for the future of student housing investment?

Yes, there is optimism for the future of student housing investment as the pandemic recedes and in-person learning resumes, driving students back to campus. Additionally, the projected increase in total enrollment in postsecondary institutions from 2020 to 2030 indicates potential growth in the student housing sector.

Conclusion

The decline in private fixed investment in student dormitories in the second quarter of 2024 reflects the lingering effects of the COVID-19 pandemic and elevated interest rates. However, with college enrollment expected to rebound and the demand for student housing growing, there is optimism for the future of the student housing sector. As in-person learning becomes the norm once again, investment in student dormitories is likely to see an uptick, driving growth in the market.