When it comes to an economic downturn or recession, real estate properties face adversity as well. However, a class of real estate properties has displayed the ability to survive in such phases, and this is student housing. Experts in the industry claim while an economic downturn hits every sector, the student housing real estate investments were not affected. The reason is that the demand for education does not decline during such times.
Nelson Partners – How does student housing manage to survive economic downturns?
Nelson Partners is a student housing real estate development company with its headquarters located at San Clemente in California, USA. It was established in 2018 by Patrick Nelson, a skilled professional in the real estate industry with experience of more than 14 years. The team of experts here helps owners with property management when it comes to student housing facilities. They have expertise when it comes to the acquisition, development, finance, and management of these properties for students.
According to the expert team here, parents will always want their children to pursue a college degree. This means students will attend college, and they will remain there till the end of their course that is generally, on average, at least two to five years. Those already with a graduation degree believe that further studies will help them get better career opportunities and jobs during an economic slump.
This means those people who have properties near a college or a university have the golden opportunity to reap the huge income potential of student housing even during times of an economic recession.
Appreciation in value
The property also increases in value over time, and if one even wants to sell the property in the future, he/she will get good returns on their investment. This appreciation in value takes place because the property is close to prominent colleges, private educational institutes, and universities. Moreover, other main spots of the city like shopping centers, transportation hubs, and more are close by. This means that the value of the student housing property will increase after every two to three years. This is good news for real estate investors who are looking for property value appreciation in the future.
Owners of student housing properties do not have to be concerned about the collection of rents during such times of economic downturn. Colleges and universities accept students every year. Even during the pandemic, admissions to colleges and universities did not stop primarily because education continued online.
Students are tenants for the entire duration of their courses that span for a number of years. Even during the recession, they will study for their career ahead. If some students leave the student housing unit, you will still have the remaining students to pay their rent. Unlike conventional rental properties, there will never be zero occupancies where if one family leaves, you immediately have to promote or advertise your property on listings to get new tenants for income. Student housing from Nelson Partners does not have this problem as students by word-of-mouth will contact you when they find out there is a vacancy available for accommodation.
