With our co-hosts Grace Hill and Axiometrics, we hosted a fantastic webinar on Student Housing Trends: What's Hot in 2014. Our presenter Jay Denton, from Axiometrics (leading provider of market data) as he covers the market analysis of this growing sector and what you can do in your business to capitalize on this fast growing trend.
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6. Student Housing Compared to ConventionalApartments
The leasing cycle is completely different
Leasing is by the bed rather than by the unit
Concessions are often in the form of gift cards or other items
Unit mixes are weighted more towards four-bedroom floor plans
Amenities are geared towards students
Location is even more important
Demand is primarily from enrollment growth and pent-up demand
“Our similaritiesare different”
Quote is from Dale Berra describing his father Yogi Berra.
7. U.S. Enrollment Growth
Demand has been two-fold.Many existing student housing
options wereobsolete. Ontop of that, enrollment grew by
approximately 6 millionstudents over the last 20 years.
Sources: Axiometrics Inc., NCES
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Est.2013
2014F
2015F
2016F
2017F
2018F
U.S. Post-Secondary Total Enrollment ('000)
U.S. Post Secondary Total Enrollment ('000) Linear (U.S. Post Secondary Total Enrollment ('000))
U.S. enrollment includes schools of all types, including:
-Major universities
-Commuter schools
-Public/Private
-2 Yr Schools (Vocational/Community College)
-Online
12. Student Housing Beds Delivered by Year - National
The pace of new supply is increasing, but what does
that mean?
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
The deliveries prior to 1995 were mostly
conventional apartments later converted to
by-the-bed rentals.
This portion of the chart shows how the asset class has
matured and gained interest the last 20 years. It does not
automatically equate to oversupply.
Beds
Source: Axiometrics Inc.
Based on coverage as of February 2014.
13. National Off-Campus Student Housing Stock by Year
The real estate asset class has grown tremendously
over the last 20 years.
Source: Axiometrics Inc.
Based on coverage as of February 2014.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Beds
Though total stock continues to increase, it was practically non-
existent just 20 years ago.
14. Student Housing Stock Compared to Total Multifamily
While Student Housing has grown as an asset class,
it is still a small portion of total multifamily being
developed.
Sources: Axiometrics Inc.; Census
Based on coverage as of February 2014.
Stock represents net additions.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Cumulative Stock Added Since 1995 (Net)
Student Housing Other Multifamily
Beds
16. Expansion of Student Housing
When looking at macro supply, keep in mind how
development has spread to untapped markets.
1990 2001
2008 2014
Source: Axiometrics Inc.
Based on coverage as of February 2014.
17. Student Housing Beds Delivered by State Since 1995
Universities across Texas and the Southeast have led
the way in changing the landscape of student housing.
Source: Axiometrics Inc.
Based on coverage as of February 2014.
0
20,000
40,000
60,000
80,000
100,000
120,000
TX FL NC GA PA CA MI AL VA AZ SC IN OH IL
Beds
18. Number of Beds Delivered by Development Cycle
These universities have had varying waves of supply
deliver over the previous development cycles.
Source: Axiometrics Inc.
Based on coverage as of February 2014.
0
5,000
10,000
15,000
20,000
25,000
30,000
FSU TAMU FLA TEX UCF TEXST GSU GEOR TTU NCSU
2011-Current
2003-2010
1995-2002
Before 1995
19. Beds Delivered by Year for Select Universities
Deliveries at individual universities do not show the
same type of upward slope as the national trend.
Source: Axiometrics Inc.
Based on coverage as of February 2014.
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
University of Arizona
0
500
1,000
1,500
2,000
2,500
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
University of Central Florida
0
500
1,000
1,500
2,000
2,500
3,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
University of Texas at Austin
0
200
400
600
800
1,000
1,200
1,400
1,600
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
University of Alabama
20. Where are Students Living?
By-the-bed rentals located off campus are still in the
minority. Most students are living in the “other” product.
Sources: Axiometrics Inc., Common Data Sets, IPEDS
Based on coverage as of February 2014.
0
10,000
20,000
30,000
40,000
50,000
60,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Beds
University of Texas
Occupied Beds by Type
Other On Campus Off Campus - By the Bed
0%
20%
40%
60%
80%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ShareofTotalBeds
University of Texas
Share of Occupied Beds by Type
Other On Campus Off Campus - By the Bed
0
10,000
20,000
30,000
40,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Beds
University of Alabama
Occupied Beds by Type
Other On Campus Off Campus - By the Bed
0%
20%
40%
60%
80%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ShareofTotalBeds
University of Alabama
Share of Occupied Beds by Type
Other On Campus Off Campus - By the Bed
21. POLLING QUESTION
What do you think is the most
critical for the success of
a Student Housing property?
22. Variance in Pre-lease Rates by University
Each circle represents a property’s rate in February ’14.
Why are some properties leaders or laggards?
Source: Axiometrics Inc.
Based on coverage as of February 2014.
23. Fall 2014 Pre-lease Rates by Distance from Campus
Properties close to campus tend to lease faster, but
other factors matter as well.
Source: Axiometrics Inc.
Based on coverage as of February 2014.
0%
20%
40%
60%
80%
100%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Feb 2014 Prelease by Distance
Florida State University
0%
20%
40%
60%
80%
100%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Feb 2014 Prelease by Distance
Louisiana State University
0%
20%
40%
60%
80%
100%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Feb 2014 Prelease by Distance
Texas A&M University
0%
20%
40%
60%
80%
100%
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Distance from Campus (Mi)
Feb 2014 Prelease by Distance
University of Texas at Austin
24. What are the Rent Levels at Student Properties?
At Florida State University, the price per bed can range from $300
tomore than $1,000 depending onthe property and floor plan.
Source: Axiometrics Inc.
Based on effective rent levels collected in January 2014.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Off Campus Price Level Options
Florida State University - All Floor Plans
The price per bed can range based on factors such as:
-Number of beds in the floor plan
-Location of property
-View of units
-Property amenities
-Style of property
Price per bed
25. What are the Rent Levels at Student Properties?
At Florida State University, the price per bed can range from $300
tomore than $1,000 depending onthe property and floor plan.
Source: Axiometrics Inc.
Based on effective rent levels collected in January 2014.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Off Campus Price Level Options
Florida State University - All Floor Plans
How deep is the demand pool?
How many students in the $700-
$800/bed range can afford the next
level of product?
Price per bed
26. How Rent Levels Vary by Distance from Campus
The followingcharts show the price per bed for four bedroom
floor plans. The rent level isplotted by distance from campus.
Source: Axiometrics Inc.
Based on effective rent levels collected in January 2014.
$200
$300
$400
$500
$600
$700
$800
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Florida State University
Four-Bedroom Floor Plans
Effective Rent Per Bed
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
University of Texas at Austin
Four-Bedroom Floor Plans
Effective Rent Per Bed
27. How Rent Levels Vary byAge and Distance - National
It is no surprise that newer properties, and those closer
to campus, command a premium rent level.
Source: Axiometrics Inc.
Based on effective rent levels collected in January 2014.
The scale has been tightened to remove outliers. Some 4x4 floor
plans average more than $1,000 per bed.
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1994 1999 2004 2009 2014
Year Built
Price Per Bed by Year Built
National - 4x4 Floor Plans
Effective Rent Per Bed
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Distance from Campus (Mi)
Price Per Bed by Distance
National - 4x4 Floor Plans
Effective Rent Per Bed
28. Effective Rent Growth Performance by Property
Withina university market, rent growthvaries by property.
Source: Axiometrics Inc.
Effective rent growth is based on rates collected in from November
2013 to January 2014 compared to the same months the prior year.
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Distance from Campus (Mi)
Rent Growth by Distance
Florida State University
-10%
-5%
0%
5%
10%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Rent Growth by Distance
North Carolina State University
-10%
-5%
0%
5%
10%
15%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Rent Growth by Distance
Texas State University
-10%
-5%
0%
5%
10%
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Distance from Campus (Mi)
Rent Growth by Distance
Texas A&M University
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Disclaimer Notice.
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the “Reports”) provided herein are prepared from data believed reliable
without verification or investigation and are not guaranteed or warranted by
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do not purport to be complete or error free or useful for any purpose. The
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