The Shift Beyond Campus Boundaries
Student housing demand is no longer confined to traditional university neighborhoods. Enhanced transportation networks and digital connectivity are reshaping where students choose to live, creating unexpected opportunities for real estate investors.
Why Non-College Areas Are Gaining Traction
With only 21.5% of undergraduates at top 175 universities securing on-campus housing, students actively seek alternatives. Improved public transit, ride-sharing accessibility, and high-speed internet have made previously overlooked areas viable options.
Urban infill developments now prioritize walkable access to transit hubs rather than campus proximity. This shift opens doors for investors in areas previously deemed unsuitable for student accommodation.
Investment Opportunities in Emerging Markets
Key Areas to Watch
- Transit-Connected Suburbs: Areas with direct rail or bus links to university districts
- Mixed-Use Developments: Properties combining both residential and commercial spaces
- Technology Corridors: Districts with robust internet infrastructure supporting remote learning
Market Fundamentals Supporting Growth
The rental market is projected to grow from 8.5 million beds in 2020 to 9.2 million by 2031. Purpose-built student accommodation continues dominating this sector, with average prices per bed rising 41.5% since 2019 to $102,157.
Smart Technology Drives Location Flexibility
Students expect smart access control, high-speed connectivity, and flexible leasing options. These technologies enable comfortable living experiences regardless of distance from campus, further expanding viable investment locations.
The Bottom Line
Connectivity improvements are democratizing student housing locations. Those who recognize this shift early can capitalize on lower land costs in non-traditional areas while meeting evolving student preferences for flexibility and modern amenities.