NMHC's Student Housing Council has released development activity data for the second quarter of 2013 in 25 top student housing markets. This 25-county report shows construction starts on 418 dormitory and multifamily projects during the quarter and 586 communities in various stages of the planning process. Other takeaways from the report include:
- Purpose-built student housing on the rise. While the data set includes information on all multifamily activity near some of the nation’s largest and fastest growing state universities, additional research shows that many new and planned projects are clearly designated as student housing. These projects run the gamut from on-campus residence halls to fraternity and sorority housing to private, off-campus projects.
- Private developers increasingly involved in on-campus student housing. While historically private student housing developers have focused on off-campus project, more on-campus opportunities are opening up. In fact, more than half of the on-campus dorms in some stage of planning during the quarter were owned by private developers.
- High levels of development activity fueling some concern about future oversupply. Some markets, such as the areas around the University of Wisconsin and the University of Alabama, have a significant number of projects in the planning stages. These large pipelines suggest a possible influx of supply in select markets that could force some student housing firms to shift strategies in the future, perhaps pulling back on the development throttle in some cases or steering investment into alternative geographies in others.