10 Student Housing Trends: 2025 Data, Preferences & Insights

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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Student housing is becoming a global asset. Cross-border capital pouring into student property markets worldwide has gone up to 40% over the last three years (Knight Frank, 2019). But even with the increase in globally active capital, the private sector and institutions of higher education (IHE) are still unable to supply enough accommodations to meet student demand.

Aside from the supply shortage, developers and investors need to consider other issues like affordability and changing student preferences when constructing or renovating on-campus accommodations and student competitive housing. With these points in mind, this article aims to present emerging trends in college student housing based on market demand and student preferences. We will also touch on key issues affecting the student housing industry both pre- and post-COVID-19. 

Student Housing Trends 2025 Table of Contents

1. Demographics and the growing middle-class drive the demand for student housing for 2025.
2. International student enrollment further boosts student housing demand.
3. Opportunities in student competitive housing abound.
4. Students look for affordable accommodations with functional amenities.
5. Students will aim for mixed-use developments.
6. More graduate students look for on-campus housing.
7. Students look for more privacy in single-occupancy units.
8. Operators prepare for volatile leasing rate.
9. Universities convert on-campus housing to single occupancy.
10. Demand for student competitive housing rise during the fall semester.
11. What are the financing and investment challenges in student housing?
12. How do projected career outcomes influence student housing decisions?
13. How sustainability and eco-friendly features influence student housing choices
14. What are the legal and regulatory challenges in student housing?
15. How can accelerated academic programs drive career advancement in student housing?
16. How can data analytics enhance student housing strategies?
17. What role do online education options play in student housing?
18. The Rise of Alternative Education Models and Their Influence on Student Housing
19. How is technology transforming student housing management?
20. Can specialized certifications boost operational excellence in student housing?

Student Housing Demand for 2025

1. Demographics and the growing middle class drive the demand for student housing for 2025

Demographics and the growing middle class are driving the demand for higher education, and consequently, the demand for student housing. Many campuses were not prepared when enrollment growth resulted in huge demand for college student housing (McClure et al., 2017). By 2040, the number of students in higher education is projected to reach 594 million (Calderon, 2018). The largest share and highest volume of enrollments will be in East Asia and the Pacific.

Meanwhile, the middle class has become the largest socio-economic group in the world today (about 4 billion) and is projected to have a total population of 5.3 billion by 2030, which will represent some two-thirds of the world’s population (Kharas and Hamel, 2018). Since the middle class tends to invest more of their income in education (Kharas, 2017), we can assume the continuous expansion of higher education facilities, including the requirement for accommodations.

2. International student enrollment further boosts student housing demand

The OECD forecasts that there will be about 8 million internationally mobile students by 2025, up from 5 million in 2019. The rising middle class is fuelling demand for services and goods in all industries, including education. Two countries with a huge middle-class populationChina and Indiaare also the top two sources of international students for the US with 369,548 students, and 202,014 students, respectively, in the academic year 2018-2019 (IIE, 2019).

Globally, there is an upward trend in the number of international student enrollments. The U.K., for example, has a 6% year-on-year increase in international student applications for 2019-2020, while Australia has seen a 118% increase in applications for a higher education visa between 2010/11 and 2016/17 (Knight Frank, 2019). In Europe, there are over 2 million international students.

Other international student destinations include Russia, Canada, Japan, Saudi Arabia, and Turkey (CBRE Research, 2018). With more universities hosting international students on top of their national enrollments, we can expect continued upward demand for student housing.

3. Opportunities in student competitive housing abound

In recent years, student housing has emerged as among the most in-demand asset classes in commercial real estate worldwide (McFalls, 2019). In fact, there is too much demand for student housing, which is outstripping the supply and therefore becomes one of the reasons why is student housing so expensive. In the U.S., approximately 8 million students need student housing near campus (Meuller and Havsy, 2020). With an estimated 20.5 million enrollments by 2027, and with the top 175 American universities only able to house 21.5% of their undergraduates in on-campus housing (CBRE Research, 2019), significant opportunities remain for investors in student competitive housing.

However, the industry is highly fragmentedsome schools are facing declining enrollment, while others are continuing to grow. Thus, there will be disparities in student housing demand based on location and demographics. Demand will continue to grow in the South and West regions of the U.S., while it will decline in the Midwest and Northeast (Meuller and Havsy, 2020). 

This shortage is also a pressing concern in Europe, U.K., Australia, and India. Major European cities such as Berlin, Madrid, and Paris will have a supply gap of 100,000 beds in 2021, while the number of full-time students in the UK outweighs available beds by approximately 3:1. In India, only 20% of the current demand is met by university-operated supply, while Australia lacks available land close to universities on which to build new facilities (Knight Frank, 2019).

Student Housing Preferences

Housing preferences vary among individual students. Student housing design trends play a significant role in shaping these preferences. Nijënstein et al (2015) argue that there are considerable disparities in the housing choice behavior of individuals. This distinctive choice behavior is typically illustrated by socio-demographic determinants like income, education, gender, and age (Jansen, 2011).

4. Students look for affordable accommodations with functional amenities

In the U.S., universities are pouring billions into developing student housing with luxury amenities, supposedly to attract the high-rent market. However, a study from the Pew Research Center revealed that undergraduates are increasingly likely to be from families in poverty (Fry and Cilluffo, 2019). Also, the student population is income-challenged: 34% of undergraduates and 38% of graduate students earn less than $20,000 annually (Meuller and Havsy, 2020). Drawing from these data, we can imagine why more students will naturally look for affordable accommodations. With so many economic reasons pushing students to forego college, this certainly matters.

Moreover, in a student housing research and survey conducted by Studenthousingbusiness.com, it is revealed that students placed more value on functional amenities, such as Wi-Fi, laundry, utilities, dishwasher, and parking over pools, fitness centers, and hot tubs. Additionally, expensive and amenity-rich housing has been identified as one factor that contributes to higher vacancy rates in newer developments (Meuller and Havsy, 2020).

These particular student living trends are not unique to the U.S. as the same preferences can be seen in Europe, the U.K., and Australia. Developments are moving away from traditional dorms to residences that offer functional amenities that add real value to the student experience (Knight Frank, 2019). With this information, property owners will have a deeper understanding of the specific needs of students, which can help them how to market student housing effectively.

5.  Students will aim for mixed-use developments

Aside from having the most important amenities, students are also looking for convenience. This is why “student housing is increasingly being positioned at the center of mixed-use developments" (Booty, 2019). Mixed-use developments provide a combination of residential, office, hospitality, and commercial spaces like restaurants and groceries into a single development. This can add to the sense of community and quality accommodation that most students are looking for (Knight Frank, 2019).

Another convenient aspect of mixed-use developments is the availability of affordable choices when it comes to food. In 2018, college students spent $65 billion alone on food (Lexington Law, 2020) and 34% said that it is challenging or impossible to afford food (Porter et al., 2018). Universities, as well as private owners, can be in a better position to attract tenants and reach full occupancy for their units if they are able to provide low-cost conveniences, such as groceries and food through mixed-use student housing.

6. More graduate students look for on-campus housing

Not all students who enter college are freshmen. They can be graduate students taking their masters or doctorate degrees. As of 2018, total graduate student enrollment in the U.S. was at 3 million students (NCES, 2020).

Graduate students have different life situations. They can be married with children, and some are more mature students at the doctorate level. Though current data shows that graduate students are the ones who are most likely to live off-campusonly 6% live on campus (Meuller and Havsy, 2020)this could be due to the lack of available on-campus housing (Multifamily Insiders, 2017). And according to a student housing market report, the top reasons that graduate students cited as why they would like to live in on-campus housing include reasons related to transportation, access to campus resources, and financial reasons (Princeton University, 2017).

Student Housing: Graduate Students

Source: Souce: NMHC

Designed by

7. Students look for more privacy in single-occupancy units

The issues of affordability and shortage of supply can be addressed by increasing the bed capacity per housing unit. However, newer student housing in the U.S. is less likely to offer double occupancy. In fact, only 5% of student housing built since 2010 provide double occupancy (Meuller & Havsy, 2020).

Also, when it comes to bed and bath parity, both on-campus and student competitive housing have shifted to equal bed and bath numbers. For example, before 1980, 2/1 units were popular in student competitive housing units. But by 2010, 2/1 units had almost entirely disappeared and were replaced 2/2 or 1/1 units (Meuller and Havsy, 2020).

The preference for single occupancy and equal bed and bath parity can be attributed to an increasing appreciation of privacy among students. One observation is that many students grew up having their own bedrooms and bathrooms, and they would want to continue enjoying that privacy when they go to college. We do not expect room sharing to completely disappear; however, trends suggest that units that provide more privacy are becoming the residence of choice among students.

Impact of COVID-19 on Student Housing 

8. Operators prepare for volatile leasing rate

Before the COVID-19 pandemic, pre-leasing on student housing in the U.S. looked promising. In March, about 59.6% of beds were pre-leased for Fall 2020 (Bunch, 2020). Surprisingly, even after the outbreak and school closures, many student housing operators reported that more than half of their tenants remain on site. This leaves them optimistic about the fall semester (Bunch, 2020).

However, these are still highly volatile figures since many higher education institutions have announced that in-person lessons will not resume this academic year 2019-2020. Operators need to prepare for sudden changes in the leasing patterns of student housing units amid the pandemic.

Student Housing Pre-Leasing for Fall 2020

Source: Source: RealPage Inc.

Designed by

9. Universities convert on-campus housing to single occupancy

For institutions of higher education that will reopen in the fall, there will be stricter implementation of safety protocols against COVID-19. As per CDC guidelines, most student housings have closed property amenities, suspended work at on-site offices of residents, canceled special events, and began virtual tours of units, among others.

We can also expect special rules on social distancing to be followed. Universities will most probably convert their student residences to single-occupancy rooms, as opposed to historically more common double and triple occupancy (Pierce IV, 2020).

10. Demand for student competitive housing rise during the fall semester

When the majority of on-campus housing is converted to single-occupancy rooms, this can result in a 20% to 50% de-densifying of the campus (Pierce IV, 2020). Students who are left without accommodations will most probably turn to nearby student competitive housing, which could then result in higher demand for this type of accommodation in the fall semester.

Student competitive housing properties that are within a half-mile from campus are pre-leased 61.9% on average and tend to outperform properties that are farther away. Properties that are within a half-mile to one mile from campus are pre-leased 53.2%, while units that are over one mile are pre-leased 52.9% on average (Bunch, 2020).

Student Housing Pre-Leasing by Distance

Source: Source: RealPage Inc.

Designed by

What are the financing and investment challenges in student housing?

In an evolving market, financing student housing projects has become increasingly complex. Investors contend with rising interest rates, fluctuating market conditions, and regulatory uncertainties that affect funding sources and projected yields. Innovative financing strategies, such as joint ventures, public–private partnerships, and real estate crowdfunding, are emerging as viable options to mitigate economic risks and capitalize on market opportunities. Additionally, the shift toward flexible academic models has led to shorter tenancy cycles and demands for adaptable revenue streams, further influencing investment decisions. Stakeholders are now required to conduct comprehensive risk assessments to balance long-term asset stability with dynamic financing models. Exploring diverse career pathways, including short careers that pay well, may also contribute to developing a resilient operational infrastructure to navigate these challenges.

How do projected career outcomes influence student housing decisions?

Market analysis reveals that students often base their housing preferences on anticipated earning potential and career trajectories. This dynamic influences expectations for both affordable yet quality accommodations and premium, feature-rich living environments near leading educational and research institutions. Students pursuing programs with strong career outcomes, such as highest paying bachelor degrees in medical field, tend to show a preference for properties that combine convenience with modern amenities. Investors and property managers can use these insights to align housing offerings with evolving student aspirations, balancing cost-effectiveness with premium living standards to appeal to a diverse mix of future professionals.

How are sustainability and eco-friendly features influencing student housing choices?

Sustainability and eco-friendly features are increasingly becoming a priority for students when choosing housing. As environmental awareness grows, students are seeking accommodations that align with their values, making sustainability a key differentiator in the student housing market. This shift is not just about reducing energy consumption but also about creating healthier living environments that have a positive impact on the planet.

Here are some key sustainability trends shaping student housing:

• Energy Efficiency: Many students now prefer buildings that incorporate energy-saving technologies such as LED lighting, energy-efficient appliances, and smart thermostats. These features not only reduce the carbon footprint of housing units but also help students save on utility costs.
• Green Building Materials: Environmentally conscious students are drawn to accommodations built using sustainable materials, such as recycled or low-impact construction products. Buildings designed with green certifications (such as LEED) are seen as more attractive.
• Water Conservation: Features like low-flow toilets, water-efficient fixtures, and rainwater harvesting systems are becoming more common in eco-friendly student housing developments. These measures help conserve water, a resource that many students are becoming more mindful of.
• Sustainable Transportation Options: Student housing that provides access to bike-sharing programs, electric vehicle (EV) charging stations, or public transportation can appeal to students who are focused on reducing their carbon footprint.
• Recycling and Waste Reduction: Dedicated recycling areas, composting programs, and waste reduction initiatives are increasingly important to students, especially those committed to minimizing waste production.

What are the legal and regulatory challenges in student housing?

Legal and regulatory frameworks significantly impact student housing projects, from zoning and building codes to tenant protection laws and safety regulations. Developers and investors must conduct rigorous due diligence to ensure that project designs comply with local, state, and federal requirements while adapting to evolving policies. Proactive engagement with legal experts helps optimize project structure, manage risk, and ensure long-term operational stability. Additionally, tailored workforce training—such as insights gained from the online trades school—can enhance technical understanding and support compliance in complex regulatory environments.

How can accelerated academic programs drive career advancement in student housing?

Accelerated academic programs are emerging as pivotal in bridging the talent gap within student housing management. These targeted programs rapidly equip professionals with the operational, technological, and analytical skills needed to adapt in a market defined by dynamic student preferences and technological innovations. By reducing the time required to gain industry-relevant experience, such programs facilitate quick career transitions, enhance operational effectiveness, and support the integration of smart technologies in housing facilities. For instance, pursuing associate degree jobs through streamlined, accelerated pathways can provide candidates with a competitive edge while addressing the evolving demands of student housing management.

How can data analytics enhance student housing strategies?

Advanced data analytics provides actionable insights that empower stakeholders to refine investment decisions and tenant management strategies in student housing. By leveraging real-time enrollment figures, demographic trends, and market dynamics, investors and operators can predict demand fluctuations and adjust rental models accordingly. Furthermore, analytical tools enable precise assessment of occupancy patterns and amenity utilization, ensuring that developments align with evolving student lifestyles. Integrating external educational insights, as covered in our guide What is the easiest degree to get?, further contributes to a nuanced understanding of market segments, ultimately driving sustainable operational excellence.

What role do online education options play in student housing?

Online education has become a major influence on student housing trends, especially as more students opt for hybrid or fully remote learning experiences. With the increase in online learning, students are no longer tied to living on or near campuses for the entire duration of their studies. This shift is driving demand for flexible housing options that cater to students who need accommodation for a shorter period or less frequently on-campus.

As remote learning continues to grow, students are seeking more affordable housing arrangements, which has led to a rise in demand for off-campus apartments and shared living spaces. For those pursuing advanced degrees, like a cheapest master's degree online program, housing needs are becoming less predictable, as many students may only visit campus occasionally for exams or in-person seminars. This trend has led to an increased interest in temporary or flexible student housing options, allowing students to adjust their living arrangements as their academic schedule dictates.

Additionally, the growing popularity of online education is prompting universities to reconsider their housing policies. Institutions are rethinking how much on-campus accommodation is needed and whether it should be adapted to suit the hybrid nature of many programs today. Consequently, both students and developers are focusing on making housing more adaptable to the evolving demands of modern education.

The Rise of Alternative Education Models and Their Influence on Student Housing

The rapid evolution of alternative education pathways, including online and accelerated degree programs, is reshaping the student housing landscape. Unlike traditional four-year university attendees, students enrolled in these models often seek more flexible and cost-effective accommodations. This trend is driven by the need for living arrangements that align with non-traditional academic schedules and diverse learning formats.

For instance, learners pursuing accelerated degree programs often aim to complete their education within a condensed timeframe, reducing the necessity for long-term housing commitments. Consequently, there is a growing demand for short-term leases, co-living spaces, and modular housing options. These types of arrangements allow students the agility to adapt their living situation to the specific requirements of their coursework, whether they are participating in on-campus intensives, internships, or remote learning modules.

Additionally, this shift has implications for developers and property managers. To attract this growing demographic, offering adaptable rental terms, smart technology integration, and bundled utilities is key. Universities, too, must reevaluate their on-campus accommodations, potentially incorporating more transient housing solutions that cater to modern students' needs.

The rise of alternative education models not only underscores the importance of affordable and flexible housing options but also highlights the necessity for innovation in property development. By addressing these evolving demands, the student housing market can better serve a broader audience while ensuring sustained growth.

How is technology transforming student housing management?

The integration of digital innovations is streamlining property operations and enhancing tenant experiences. Smart building technologies, including IoT sensors for energy efficiency and predictive maintenance systems, enable operators to optimize resource allocation while ensuring regulatory compliance. Automated access controls and data-driven tenant engagement platforms further improve safety and communication efficiency. Moreover, industry professionals are increasingly required to adopt digital literacy practices to manage complex property systems, with many turning to continuous learning opportunities such as the online course for medical coding and billing to refine their data processing and management skills.

Can specialized certifications boost operational excellence in student housing?

In a competitive market, continuous professional development is critical for property managers and operational staff. Targeted training programs equip teams with practical toolkits to optimize cost efficiency, enhance tenant engagement, and effectively integrate emerging smart technologies. By leveraging focused learning paths, such as 3-month certificate programs that pay well, operators can quickly acquire essential skills to address evolving challenges and drive innovation, thereby maintaining a competitive edge in the dynamic student housing landscape.

Growing Opportunities in Student Housing

Student housing market research indicates that there is an abundance of investment opportunities in today’s global student housing market. First, student housing demand will continue to rise as the world population of college-age students also increase, and middle-class families invest more of their income in pursuing higher education.

Second, there is still a huge untapped market for graduate student housing. This is attributed to universities primarily catering to the bigger undergraduate population, but we learned that many graduate students are also applying for on-campus housing. 

Third, though many universities lost revenue as they had to close on-campus residences and refund room and board (Whitford, 2020), the survey tells us that operators are still optimistic. Pre-leasing for the fall semester has not gone down, which reminds us of the recession-resistant characteristics of this particular type of asset.

Finally, educational institutions, developers, and private investors need to carefully study the student demographics of each location in order to provide the most appropriate accommodations to students at an affordable price. In particular, student income and amenities should be reviewed and considered moving forward.

If you rely on financial aid, student housing should be one of your priorities. For one, off-campus housing might favor your situation, but does financial aid cover off campus housing? It’s best to verify with your granting organization before you proceed.

Key Insights

• Rising Global Demand for Student Housing: The demand for student housing is driven by demographics and a growing middle class, with a projected 594 million higher education students by 2040.
• International Students Boost Demand: Increasing international student enrollments, particularly from countries like China and India, significantly contribute to the global demand for student housing.
• Opportunities in Competitive Housing: There is a significant gap between demand and supply in student housing, presenting opportunities for investment, especially in regions with high enrollment and insufficient on-campus housing.
• Affordability and Functional Amenities: Students prioritize affordable housing with functional amenities over luxury features. Functional amenities like Wi-Fi, laundry, and utilities are more valued.
• Preference for Mixed-Use Developments: Students favor mixed-use developments that combine residential, office, hospitality, and commercial spaces for convenience and community feel.
• Graduate Student Housing Demand: Graduate students, who often have different needs and life situations, are increasingly looking for on-campus housing due to its proximity to campus resources and transportation benefits.
• Trend Toward Single-Occupancy Units: There is a growing preference for single-occupancy units among students, driven by a desire for privacy.
• Impact of COVID-19: The pandemic has led to volatile leasing rates, conversion of on-campus housing to single occupancy, and an expected rise in demand for off-campus student competitive housing.

FAQ

1. What drives the demand for student housing? The demand for student housing is driven by demographics, a growing middle class investing in higher education, and increasing international student enrollments.
2. How has international student enrollment impacted student housing? International student enrollment has significantly boosted the demand for student housing, as more students from countries like China and India seek education abroad.
3. Why is there a shortage of student housing? The shortage is due to the rapid growth in student enrollments outpacing the supply of available housing, especially in high-demand regions and major cities.
4. What amenities do students prioritize in housing? Students prioritize functional amenities such as Wi-Fi, laundry, utilities, dishwasher, and parking over luxury features like pools and fitness centers.
5. What are mixed-use developments, and why do students prefer them? Mixed-use developments combine residential, office, hospitality, and commercial spaces, providing convenience and a sense of community, which are attractive to students.
6. Is there a demand for on-campus housing among graduate students? Yes, more graduate students are looking for on-campus housing due to its proximity to campus resources, transportation convenience, and financial reasons.
7. What is the trend regarding single-occupancy units in student housing? There is a growing preference for single-occupancy units, driven by students' desire for privacy and comfort.
8. How has COVID-19 affected student housing? The pandemic has led to volatile leasing rates, conversion of on-campus housing to single occupancy, and an expected rise in demand for off-campus student competitive housing.
9. What opportunities exist for investors in the student housing market? There are significant investment opportunities due to the continuous rise in student housing demand, particularly in regions with high enrollment and insufficient housing supply.
10. What should be considered when investing in student housing? Investors should study the student demographics of each location, prioritize affordability and functional amenities, and consider the specific needs of students to provide appropriate accommodations.

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