Markets & EconomyRentals

Student housing deliveries dip

Collegiate firms will deliver more beds in 2015 than in 2016 -- which is another way of saying fewer projects will start in 2015

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For prominent student housing developers, June represents an intense month where a dual focus is necessary. Collegiate builders must concentrate on wrapping up construction and preleasing projects slated for fall 2015 while also breaking ground on properties tabbed for fall 2016 completion. According to data from Axiometrics Inc., collegiate firms will deliver more beds in 2015 than in 2016 -- which is another way of saying fewer projects will start in 2015 when compared with last year. The data firm estimates that fewer than than 50,000 beds will be delivered in 2016, with roughly 50,100 beds delivered in fall of this year. Both these totals represent overall decreases in beds delivered when compared to fall 2014 and 2013, when 63,000 and 60,000 beds were completed, respectively. This decrease in completions, coupled with projected enrollment increases, is creating a healthy balance between supply and demand, which should equate to rent growth and solid leasing velocities d...