Student Housing: A Potentially Profitable Niche
Housing for students is a segment of the real estate market that continues to do well. With a record 19.1 million students enrolled in colleges and universities, the market has a steady source of business and is likely to remain stable through 2018 when the last of the baby boomers’ children are college age, analysts say.

Today’s students expect more amenities than previous generations demanded. For instance, Campus Crest, which manages 27 properties with 13,580 beds, is typical in offering fully furnished units with equipped kitchens, washers, and dryers in each unit and swimming pools on site,

Rents are typically 10 to 20 percent higher than conventional apartments, but management can be challenging. The operations expenses are about 45 percent of revenues, compared to 35 percent in conventional apartments, according to Michael Orsak, vice president at Campus Advantage, which manages and owns 50 properties across the U.S.

Source: MarketWatch.com, Jennifer Waters (10/03/2010)