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Nelson Partners Mentions How Student Housing Can be a Stable and Recession-Proof Investment  

Savvy investors are always on a look out for profitable investments that can be added to their portfolio. Among all popular investment options available, real estate can particularly be a solid diversification tool. Student housing is steadily becoming an under-the-radar sector to take into consideration when planning to invest in real estate. Student housing investments have an aura of exclusivity surrounding it, which underlines that this sector is far from being fully realized. There are plenty of opportunities available in this sector for new investors. One can always invest in premium student housing properties through companies like Nelson Partners.

Student housing is a smaller niche within the commercial real estate market. For years, it used to be the domain of people with a high net worth and institutional investors. But times are gradually changing. Today, a huge number of individual investors are choosing to invest in student housing. The barriers to entry in this real estate domain for everyday investors are crumbling. Hence, it can be a prudent investment vehicle for anyone desiring to expand their real estate investment horizons. Student housing manages to provide a level of stability that is not always present in other sectors of real estate, especially during periods of market volatility. Hence, it manages to earn great marks for consistency. Demand for student housing is always going to be there, which basically means that one would have viable tenants for their investment year after year.  This factor holds true even in situations where economy stutters.

Relative to other sectors, student housing is much less economically sensitive, owing to the nature of this industry. During most economic downturns, college enrollments remain steady and may even rise at times owner to lesser employment opportunities.  People often explore opportunities for higher education during economic crisis in order to get better jobs.  This characteristic of student housing investment can be quite reassuring for investors who are worried about the possibility of a recession or any other turbulence in the market. Student housing provides a degree of predictability that most of the other investment vehicles may lack. The fact that students are often required to sign one-year leases is another great advantage. The rental rates of these units can be reset annual, which works in the favor of the investor in this rising rental market environment. Lease renewals additionally might be easier to obtain as students typically know well in advance whether they are going to return to school the next year or not.

The student housing sector is exposed to a greater degree of seasonal volatility owing to the need to lease facilities each school year over a comparatively shorter window. This extent of seasonality makes student housing a unique sector among others.  But on the whole, it can be a stable and risk-free investment vehicle for the most, especially if people choose to make their investments through companies like Nelson Partners.