The University of South Carolina will add around 1,300 new beds in privately owned student housing properties in time for the fall 2016 semester, seventh-most in the country.
A study by student housing and apartment market data provider Axiometrics found seven of the 10 university markets expecting the most new beds were in the Southeast or the Southwest. Arkansas led the way with an anticipated 2,319 new beds.
Several new student-oriented apartment complexes have recently opened in Columbia, including: Park Place, located at Blossom and Huger streets, with 640 beds; Station at Five Points, located at Gervais and Harden streets, with 660 beds; and 650 Lincoln Phase Two, with 297 beds.
Nationwide, a total of 47,700 new beds are scheduled for come to market in time for the fall semester.
“Privately owned student housing is quickly becoming an integral sector in real estate, and performance metrics demonstrate its strength,” Jay Denton, senior vice president of analytics for Axiometrics, said in a release. “Axiometrics forecasts rent growth to remain strong over the next five years and occupancy to stay above 95% as enrollment continues to rise nationwide.”
Rent growth was highest for properties one-half mile to one mile from campus. Rents for housing half a mile from campus grew almost 3%.
To date, 43,800 new beds are scheduled for delivery in time for the fall 2017 semester. Texas A&M, second to Arkansas in 2016, is leading the way with 2,336 anticipated new beds.
“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 said. “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.”
Indiana University–Purdue University Indianapolis (IUPUI) anticipated providing the third-highest number of beds for fall 2016, followed by Maryland, Louisiana State and Tennessee. Nebraska-Lincoln was eighth, followed by South Florida and Mississippi.