STUDENT HOUSING MARKET REPORT OVERVIEW

The size of the worldwide student housing industry was USD 12 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 4.95% to reach USD 19 billion by 2033. In 2025, the market share for student housing is dominated by North America.

As an alternative to on-campus living, university or college students might choose to live in student housing. The housing is usually located near a college campus or in parts of a city known for their reasonably priced housing. There is a widespread misperception that houses that provide housing for students are either dilapidated, overcrowded, or expensive and beyond of reach for the majority of families. Although the house can be anything the investor desires, its primary distinction from other forms of housing is that it is specifically created and marketed to students.

The availability of reasonably priced, first-rate student housing is an essential component of every study destination. A shortage of reasonably priced housing raises living costs for both domestic and foreign students. This circumstance can have a detrimental effect on budgets in addition to the competitiveness of the destination and the quality of the student experience. Furthermore, one important indicator of students' overall interest in a place is the demand for housing.

COVID-19 IMPACT

Post-Pandemic Lifted Lockdown Led In Upsurge Of The Market Demand

The COVID-19 pandemic is expected to boost the market share of student housing since the education sector has adopted student housing to increase efficiency, transparency, security, and safety. To ensure student access to education and preserve the continuation of schools, colleges, and institutions, universities are putting student housing learning systems into place. Therefore, it is anticipated that there will be significant opportunities for the growth of the global student housing market throughout the forecast period.

LATEST TRENDS

Profitable Returns Opportunity for the Investors to Boost the Market Share

Everyone who wants to avoid living in a dorm is catered to by the student housing market, which is perfect for anyone who has the money to invest in student apartments. Throughout the school year and even into the summer, there is a constant flow of tenants searching for a place to live in the student housing market, which is different from regular real estate markets. This implies that there is always a lease accessible to investors. It can be very profitable to rent out a flat with the right amenities to students. Given that it is a new industry with substantial scalability and the potential for higher dividends than traditional assets, this is a great opportunity for investors.

• As admissions to city institutions continue to rise, there is a growing demand for student housing. For example, Boston has had a 10.3% increase in student admissions over the last ten years, with graduate students accounting for a 27.3% increase.

• The majority of students choose private rental flats because on-campus accommodation is limited.  About 16,900 private residential units in Boston are occupied by students, reflecting the growing popularity of independent living.Particularly in the US, where Hispanic students are predicted to account for over 66% of all new college admissions by 2033, the demographics of students are rapidly shifting.

STUDENT HOUSING MARKET SEGMENTATION

By Type

Based on type, the market is classified into PBSA, private rented sector, university accommodation and other.

• Purpose-Built Student Accommodation (PBSA) dominates the market with 45% of sales, or approximately USD 5.73 billion in 2024, with a CAGR of 5.2%, growth factor rising demand for secure, fully serviced accommodation close to campus.

• Private Rented Sector is approximately 30% of market, or approximately USD 3.82 billion in 2024, with a CAGR of 4.6%, growth factor affordability and rising flexibility for students choosing to live off campus.

• University Accommodation is 20% of market, or approximately USD 2.54 billion in 2024, with a CAGR of 4.4%, growth factor convenience proximity to campus and increased funding towards university-managed accommodation.

• Other is 5%, or USD 0.63 billion in 2024, growing at a CAGR of 4.1%, growth factor increased popularity for co-living spaces and hybrid accommodation models.

By Application

Based on application, the market is classified into freshman, sophomore, junior, senior, 5th year or later, graduate student and others.

DRIVING FACTORS

Increasing Student Population to Inflate the market Share

Due to the growing student population that moves to other places for academic reasons, student housing has a lot of promise. There is a high need for student housing in a few states due to the growing number of migrant students, yet campus facilities at educational institutions are inadequate to meet this demand. Developers have a tremendous opportunity to take advantage of this market opportunity and provide facilities in line with the evolving needs of the students because the government has set a GER target of 30% by 2025–2033.

Spending Appetite Towards a Better Standard of Living to Strengthen the Market Structure 

Although there is a perception that students dine out more frequently than they prepare their own meals, having the room and the right tools can be enticing as most university dorms do not provide such a luxury. There is no doubting the desire for international students who want to pursue an education abroad, and as a result, they can be a wonderful fit for your property. Nevertheless, whether you provide furnished or unfurnished housing could be a deal-breaker for certain students. This may be due to the fact that they lack the resources or means to furnish their home and choose to live in a place that already has everything they require.

• The growth of urban campuses is really showing how crucial student housing has become. Take Boston, for example, where over 150,000 students are influencing the local housing market.

• With international students returning post-pandemic, the need for places to live has skyrocketed. In Australia, these students represent about 7% of the rental market, which is driving up prices in major cities.

RESTRAINING FACTORS

Certain Security and Trust Issues can Hamper the Market Demand

Quality and trust difficulties are the top challenges that both landlords and tenants confront as the rental housing sector remains unorganised and opaque. Given that female students account for more than 47% of overall student enrolment in India, it is critical that student housing accommodations meet the criteria for safety, security, and predictability of service. However, the restraining factor safety, quality and trust issues is projected to limit the student housing market growth in the forecasted period.

• The population of individuals who are in the 18–24 age group—a key feeder population for universities—has been diminishing over recent years. This is a problem for student housing developers because a dwindling student population can result in fluctuations in occupancy levels.

• Where students tend to concentrate, rents are usually much higher. It has been found that in high-density student areas, rents are around $200 more than in areas of lower student density. This is an increasing problem for students and housing operators too.

STUDENT HOUSING MARKET REGIONAL INSIGHTS

North American Region Gauge for the Huge Revenue Share in the Market

Due to the growing need for educational institutions in the region, North America is predicted to dominate the market for student housing globally. American university and college students are accustomed to using housing for students and rentals to advance their knowledge and skills by studying without any disturbances Universities and colleges in the area are employing the housing for students to let the immigrants and the in-house students stay near the campus, making academic campus accessible and secure for everyone. Increased student enrollments, better campus amenities, and strong demand for PBSA are the main drivers of growth in North America, which accounts for 35% of the market size and is expected to reach USD 4.45 billion in 2024 with a CAGR of 4.8%.

• Asia-Pacific accounts for 28% of the market, or USD 3.56 billion in 2024, and is expanding at a compound annual growth rate (CAGR) of 5.3%. Infrastructure development in nations like China, India, and Australia, as well as rising international student mobility, are the main drivers of this expansion.

• Europe is 30% of market, or approximately USD 3.82 billion in 2024, with a CAGR of 4.7%, growth factor stable demand in education hubs like the UK, Germany, and France, and government incentives towards student housing construction.

• Rest of the World (RoW) is 7%, or approximately USD 0.89 billion in 2024, growth factor growth in student housing developments and rising international student enrollments in the Middle East and Latin America.

Due to the growing number of students who move around the world for their education, student accommodation has a lot of promise. The campus facilities at educational institutions are unable to meet the demand in housing for students due to the increased number of migrant students in a few states. The North American region offers enormous potential for developers to take advantage of this opportunity and create facilities in accordance with the shifting needs of the students, with the government targeting a GER of 30% by forecast period.

KEY INDUSTRY PLAYERS

Notable Players contributing towards the market

The housing solution providers are putting their development plans into action to increase their market presence and secure a larger market share for the students.

• Harrison Street has been busy since it started, pouring more than $22 billion into 410 student housing projects, providing over 222,000 beds across North America and Europe.

• The Preiss Company (U.S.A.) Most Recent Acquisition the Preiss Company increased its portfolio to more than 30,000 beds in 12 states by purchasing a 784-bed student housing development in late 2024. 

In order to increase their presence in the global market, providers of students apartment in edutech solutions have implemented significant growth strategies, including product launches, partnerships & acquisitions, and the creation of regional and global distribution networks.

List of Top Student Housing Companies

• Harrison Street (U.S.A)
• The Preiss Company (U.S.A)
• Greystar (U.S.A)
• The Scion Group (U.S.A)
• Asset Living (U.S.A)
• The Collier Companies (U.S.A)
• American Campus Communities (U.S.A).

REPORT COVERAGE

The report is an analysis of all market aspects for the forecast period. It also shows the evaluation of opportunities, trends, market share, product innovations, technology innovations, driving factors, restraints and others that contribute towards the market growth.