Multi-Housing News - May 2009 - (Page 10)

investment A Safer Haven Student housing has been called ‘recession-resistant,’ but this downturn brings its resilience into question By Keat Foong, Executive Editor D Do niche markets such as student, senior and military housing offer a sanctuary for investment at this time of economic crisis? There are compelling reasons why student housing, at least, is a more resilient investment compared to conventional apartments. Indeed, the sector once called recession-proof, is still recession-resistant. The general assumption is that demand for this product is relatively less subject to employment levels as—recession or not—students will still need to be educated. And if, and when, they lose their jobs, many people will go back to school. “Historically, when the U.S. economy has gone into a recession, student enrollment at universi- ties has gone up significantly,” according to research by Hendricks & Partners. According to its “Update on the National Market for Student Housing,” student housing cap rates increased by only 100-250 basis points between the summer of 2008 and the first quarter of 2009—compared to an increase of 150-250 basis points for conventional multifamily. Researchers at Hendricks & Partners note that as other assets suffered losses following last September’s economic meltdown, student housing remained relatively untouched as it was already leased, contracts were signed and occupancy was locked in. “We see that student housing has not

Table of Contents for the Digital Edition of Multi-Housing News - May 2009

Multi-Housing News - May 2009
Contents
From the Editor
Executive Insight: David Picerne
Market Pulse
Investment: A Safer Haven
Finance: Weathering the Risks
Case Study: Industrial Chic
Profile: Green Properties
Technology: Social Media
Renovation Tips
Products: A Touch of Luxury
Perspective: Employee Relations

Multi-Housing News - May 2009