The student housing market surrounding LSU is one of the 10 most active university markets for privately built housing for students, according to a new report from Axiometrics, an apartment data services firm based in Dallas.
This fall, roughly 1,440 new beds are expected to hit the market in time for the fall semester. The LSU market trails only Arkansas (2,319), Texas A&M (1,850), Indiana University–Purdue University Indianapolis (1,522) and Maryland (1,493).
Nationally, the student housing real estate sector continued its strong performance during the fall 2016 leasing season, and roughly 47,700 new beds are expected to come to the market through privately built student housing in time for the fall semester, the report says.
“Privately-owned student housing is quickly becoming an integral sector in real estate, and performance metrics demonstrate its strength,” says Jay Denton, senior vice president of analytics for Axiometrics, says in a statement. “Axiometrics forecasts rent growth to remain strong over the next five years and occupancy to stay above 95%, as enrollment continues to rise nationwide.”
The new supply in student housing this year is the third highest for privately owned properties behind 2014 and 2013.
“Though deliveries of new supply are not as high as they were a couple of years ago, demand remains strong, and students are generally absorbing the new beds,” Denton says. “One thing that differentiates student housing from conventional apartments is that the distribution of new supply can change dramatically year to year. As construction near one school meets the demand, a building boom will begin in another university market.”
