Student Housing Market Size, Share, Growth, and Industry Analysis, By Type (PBSA, Private Rented Sector, University Accommodation and Others), By Application (Freshman, Sophomore, Junior, Senior, 5th year or later, Graduate student and Others), Regional Insights and Forecast From 2025 To 2033

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STUDENT HOUSING MARKET OVERVIEW

The global student housing market size is forecasted to reach USD 19.65 billion by 2033 from USD 12.72 billion in 2024, registering a CAGR of 4.95% during the forecast period from 2025 To 2033.

Student housing is a type of lodging available to university or college students as an alternative to on-campus housing. The housing typically found close to a college campus or in areas of a city that are recognised for having affordable accommodation. There is a common misconception that homes offering student accommodation are either in disrepair, are overcrowded, or are lavish and beyond of reach for most families. The housing can be anything the investor wants it to be, but the main feature that sets it apart from other types of housing is that it is expressly designed for and marketed to students.

Any study destination's ability to provide affordable, high-quality student accommodation is a crucial factor. For both local and international students, a lack of affordable accommodation drives up living expenses. In addition to having an impact on student experience quality and destination competitiveness, this situation can also negatively affect budgeting. In addition, the demand for housing is a key sign of the general interest of students in a location.

COVID-19 IMPACT

Post-Pandemic Lifted Lockdown Led In Upsurge Of The Market Demand

Due to the adoption of housing for students by the education sector to improve efficiency, transparency, security, and safety, it is predicted that the COVID-19 epidemic will increase the student housing market share. Universities are implementing Student housing learning systems to assure student accessibility to education in order to maintain the continuity of school, colleges and institutions. As a result, it is projected that throughout the forecast period, there will be considerable prospects for the expansion of the worldwide student housing market growth.

LATEST TRENDS

Profitable Returns Opportunity for the Investors to Boost the Market Share

Student housing is a market that caters to everyone who wants to avoid the dorm living experience, which is ideal for anyone with the financial resources to invest in student apartments. In comparison to ordinary property markets, the student housing market always has a steady flow of tenants looking for someplace to live during the school year and even into the summer months. This means that as an investor, there is always a lease available. Renting out a flat with the correct amenities to students can be quite rewarding. This is an excellent opportunity for investors because it is a fledgling market with significant scalability, allowing for larger yields than traditional assets.

• Student housing demand is increasing as city universities experience steady growth in admissions. For instance, throughout the past ten years, Boston has had a 10.3% growth in student admissions, with graduate students contributing to a 27.3% increase.

• Due to the scarcity of on-campus housing, most students opt for private rental apartments.  In Boston, around 16,900 private residential units house students, indicating the increasing trend towards independent living space.

• The demographics of students are drastically changing, especially in the United States, where by 2033, Hispanic students are expected to make up almost 66% of all new college admissions.

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STUDENT HOUSING MARKET SEGMENTATION

By Type

Based on type, the market is classified into PBSA, private rented sector, university accommodation and other.

• Purpose-Built Student Accommodation (PBSA) dominates the market with 45% of sales, or approximately USD 5.73 billion in 2024, with a CAGR of 5.2%, growth factor rising demand for secure, fully serviced accommodation close to campus.

• Private Rented Sector is approximately 30% of market, or approximately USD 3.82 billion in 2024, with a CAGR of 4.6%, growth factor affordability and rising flexibility for students choosing to live off campus.

• University Accommodation is 20% of market, or approximately USD 2.54 billion in 2024, with a CAGR of 4.4%, growth factor convenience proximity to campus and increased funding towards university-managed accommodation.

• Other is 5%, or USD 0.63 billion in 2024, growing at a CAGR of 4.1%, growth factor increased popularity for co-living spaces and hybrid accommodation models.

By Application

Based on application, the market is classified into freshman, sophomore, junior, senior, 5th year or later, graduate student and others.

DRIVING FACTORS

Increasing Student Population to Inflate the market Share

Due to the growing student population that moves to other places for academic reasons, student housing has a lot of promise. There is a high need for student housing in a few states due to the growing number of migrant students, yet campus facilities at educational institutions are inadequate to meet this demand. Developers have a tremendous opportunity to take advantage of this market opportunity and provide facilities in line with the evolving needs of the students because the government has set a GER target of 30% by 2025–2033.

Spending Appetite Towards a Better Standard of Living to Strengthen the Market Structure 

Although there is a perception that students dine out more frequently than they prepare their own meals, having the room and the right tools can be enticing as most university dorms do not provide such a luxury. There is no doubting the desire for international students who want to pursue an education abroad, and as a result, they can be a wonderful fit for your property. Nevertheless, whether you provide furnished or unfurnished housing could be a deal-breaker for certain students. This may be due to the fact that they lack the resources or means to furnish their home and choose to live in a place that already has everything they require.

• The growth of urban campuses is really showing how crucial student housing has become. Take Boston, for example, where over 150,000 students are influencing the local housing market.

• With international students returning post-pandemic, the need for places to live has skyrocketed. In Australia, these students represent about 7% of the rental market, which is driving up prices in major cities.

RESTRAINING FACTORS

Certain Security and Trust Issues can Hamper the Market Demand

Quality and trust difficulties are the top challenges that both landlords and tenants confront as the rental housing sector remains unorganised and opaque. Given that female students account for more than 47% of overall student enrolment in India, it is critical that student housing accommodations meet the criteria for safety, security, and predictability of service. However, the restraining factor safety, quality and trust issues is projected to limit the student housing market growth in the forecasted period.

• The population of individuals who are in the 18–24 age group—a key feeder population for universities—has been diminishing over recent years. This is a problem for student housing developers because a dwindling student population can result in fluctuations in occupancy levels.

• Where students tend to concentrate, rents are usually much higher. It has been found that in high-density student areas, rents are around $200 more than in areas of lower student density. This is an increasing problem for students and housing operators too.

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STUDENT HOUSING MARKET REGIONAL INSIGHTS

North American Region Gauge for the Huge Revenue Share in the Market

Due to the growing need for educational institutions in the region, North America is predicted to dominate the market for student housing globally. American university and college students are accustomed to using housing for students and rentals to advance their knowledge and skills by studying without any disturbances Universities and colleges in the area are employing the housing for students to let the immigrants and the in-house students stay near the campus, making academic campus accessible and secure for everyone. Increased student enrollments, better campus amenities, and strong demand for PBSA are the main drivers of growth in North America, which accounts for 35% of the market size and is expected to reach USD 4.45 billion in 2024 with a CAGR of 4.8%.

• Asia-Pacific accounts for 28% of the market, or USD 3.56 billion in 2024, and is expanding at a compound annual growth rate (CAGR) of 5.3%. Infrastructure development in nations like China, India, and Australia, as well as rising international student mobility, are the main drivers of this expansion.

• Europe is 30% of market, or approximately USD 3.82 billion in 2024, with a CAGR of 4.7%, growth factor stable demand in education hubs like the UK, Germany, and France, and government incentives towards student housing construction.

• Rest of the World (RoW) is 7%, or approximately USD 0.89 billion in 2024, growth factor growth in student housing developments and rising international student enrollments in the Middle East and Latin America.

Due to the growing number of students who move around the world for their education, student accommodation has a lot of promise. The campus facilities at educational institutions are unable to meet the demand in housing for students due to the increased number of migrant students in a few states. The North American region offers enormous potential for developers to take advantage of this opportunity and create facilities in accordance with the shifting needs of the students, with the government targeting a GER of 30% by forecast period.

KEY INDUSTRY PLAYERS

Notable Players contributing towards the market

The housing solution providers are putting their development plans into action to increase their market presence and secure a larger market share for the students.

• Harrison Street (U.S.A) has been busy since it started, pouring more than $22 billion into 410 student housing projects, providing over 222,000 beds across North America and Europe.

• The Preiss Company (U.S.A.) Most Recent Acquisition the Preiss Company increased its portfolio to more than 30,000 beds in 12 states by purchasing a 784-bed student housing development in late 2024. 

In order to increase their presence in the global market, providers of students apartment in edutech solutions have implemented significant growth strategies, including product launches, partnerships & acquisitions, and the creation of regional and global distribution networks.

List of Top Student Housing Companies

• Harrison Street (U.S.A)
• The Preiss Company (U.S.A)
• Greystar (U.S.A)
• The Scion Group (U.S.A)
• Asset Living (U.S.A)
• The Collier Companies (U.S.A)
• American Campus Communities (U.S.A).

REPORT COVERAGE

The report is an analysis of all market aspects for the forecast period. It also shows the evaluation of opportunities, trends, market share, product innovations, technology innovations, driving factors, restraints and others that contribute towards the market growth.