黑料官网 Monitor Articles about Student Housing Finance /category/student-housing/student-housing-finance/ 黑料官网 Monitor is a business development and market intelligence resource providing international education industry news and research. Fri, 21 Nov 2025 15:52:28 +0000 en-GB hourly 1 https://wordpress.org/?v=6.5.3 /wp-content/uploads/2022/07/cropped-LOGO_2022_FLAVICON-2-32x32.png 黑料官网 Monitor Articles about Student Housing Finance /category/student-housing/student-housing-finance/ 32 32 Why housing will decide Europe鈥檚 future as a study destination /2025/11/why-housing-will-decide-europes-future-as-a-study-destination/ Thu, 06 Nov 2025 20:26:57 +0000 /?p=46410 The following is a guest post contributed by Dr Arunima Dey, research and programme manager at The Class Foundation. The Student Living Monitor is an annual survey by The Class Foundation to explore the connection between student happiness, experience and living environments in Europe. Engaging thousands of participants across Europe, the survey offers valuable insights…

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The following is a guest post contributed by Dr Arunima Dey, research and programme manager at . is an annual survey by The Class Foundation to explore the connection between student happiness, experience and living environments in Europe. Engaging thousands of participants across Europe, the survey offers valuable insights into students’ experiences and provides recommendations for the sector.

黑料官网 Monitor鈥檚 latest findings signals a historic realignment in global higher education. For two decades, the 鈥淏ig Four鈥 鈥 the United States, the United Kingdom, Australia, and Canada 鈥 dominated the international student landscape. But recent reports make it clear that the next decade belongs to a new 鈥淏ig Ten.鈥 Europe鈥檚 mainland markets, Spain, Portugal, the Netherlands, Austria, Germany, Italy, France, and the Nordics, along with a number of destinations in Asia, are gaining ground as students seek affordability, safety, and quality of life.

However, this growing attention to Europe comes with an Achilles鈥 heel: housing. Accommodation shortages and rent inflation are now the leading deterrents for mobility, even in otherwise attractive destinations.

Access is key

Findings from The Class Foundation鈥檚 confirm this warning with data drawn from more than 19,000 students across 16 countries. The study reveals that the type and availability of accommodation are the strongest predictors of student well-being. Students living in Purpose-Built Student Accommodation (PBSA) record an average Mental Health Index-5 (MHI-5) score of 58.4, compared with 56.2 for those in other housing, and just 51.1 for those living at home. When students remain with parents because they cannot find alternatives, their scores plunge to 44.3, and drop further to 42.6 when financial barriers prevent moving out.

(For reference, the MHI-5 serves as a globally recognised and extensively documented measure of well-being. It operates on a scale from 0 to 100, where scores above 60 indicate good mental health, reflecting optimal well-being.)

Equally telling is the question of choice. Students who obtained their first-choice accommodation report an MHI-5 score of 59.6, versus 54 for those who did not. The largest reason for missing out, cited by 51%, is unavailability. Another 23 percent were priced out. Together, these figures show that inadequate supply, not preference, is what constrains the European student experience.

Building community

More than bricks and rent, what defines a good student home is belonging. The student Living Monitor data shows that students engaged in residence community life record an MHI-5 of 62.3, while those who do don鈥檛 score 6 points lower. That difference is not architectural 鈥 it鈥檚 human. Communal lounges, green courtyards, and shared study spaces are where Europe鈥檚 future talent finds connection, purpose, and resilience. Designing for community, therefore, is designing for well-being. Conversely, loneliness exerts the single largest negative effect observed across all indicators, which impacts over 40% of students: students affected by loneliness score 49.9 on the MHI-5, versus 63.7 for those who are not 鈥 a gap of 13.8 points.

Fragile finances

Yet, two-thirds of students describe their finances as fragile, and 56.6% lack access or awareness of mental-health support.

Further, behind Europe鈥檚 rise lies a fragile reality: two in three students are struggling getting by financially, and over 56% don鈥檛 know where access or to turn for mental-health support. The promise of international study loses its shine when basic security 鈥 a financial safety and someone to talk to 鈥 is missing.

Start with housing

The data make one conclusion unavoidable: Europe鈥檚 rise as a global study hub will only be sustainable if housing is recognised and treated as essential infrastructure. Expanding PBSA supply, aligning planning and zoning incentives, and embedding well-being into design are no longer optional 鈥 they are structural imperatives.

Ultimately, Europe鈥檚 success will rest on three pillars within the housing ecosystem: affordability and availability, ensuring every student can find a home; community, creating spaces that foster belonging and connection; and support, providing accessible financial and mental-health resources that help students thrive.

If the 2020s marked the shift from the Big Four to the Big Ten, the 2030s will decide which destinations truly built a foundation for success. For Europe, that foundation begins 鈥 and could falter 鈥 with housing.

The Class Foundation, established in 2011, operates as a partner-based non-profit organisation with the goal of advancing the professionalism and understanding of student housing across Europe. Serving as the largest European student living eco-system, its mission centres on being the foremost think tank dedicated to the realm of student housing and experience.

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European destinations attracting more international students amid continuing housing challenges /2025/01/european-destinations-attracting-more-international-students-amid-continuing-housing-challenges/ Wed, 29 Jan 2025 18:33:29 +0000 /?p=44916 Many European countries have welcomed more students than ever over the past few years (e.g., Germany, France, Spain, Switzerland, and Ireland). International students are drawn to quality education and to lower tuition relative to the leading destinations of Australia, Canada, UK, and US (aka the 鈥淏ig Four鈥). But in Europe, students often face the same…

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Many European countries have welcomed more students than ever over the past few years (e.g., Germany, France, Spain, Switzerland, and Ireland). International students are drawn to quality education and to lower tuition relative to the leading destinations of Australia, Canada, UK, and US (aka the 鈥淏ig Four鈥). But in Europe, students often face the same kind of issue as do students in the Big Four: insufficient purpose-built student housing (PBSA) and expensive rental fees.

Last year, there was a shortage of 3 million beds for students across Europe and the situation is expected to worsen in the next five years, when there will be a need for an additional 200,000 more beds, according to . This is in part because Europe鈥檚 student population is expected to grow by 10% by 2030/31, reaching 23.5 million, with half being international students.

Top student cities in Europe are the worst off in terms of supply, with 40 cities accounting for 40% of the 3-million bed shortage.

Only 40% of PBSA beds across Europe are privately funded. The rest are publicly owned or subsidised and not always accommodating of all types of students/budgets. The situation, says JLL, equates to a 鈥溾偓450bn investment opportunity.鈥

As it stands, most PBSA investment in Europe is in the UK, and JJL observes that 鈥渒ey markets in continental Europe would need to grow, on average, 13 times to match the UK 2018-2022 [investment] average.鈥 For example:

鈥淭he largest student markets like Germany and France could see their investment grow from an average of 鈧0.5bn to 鈧7bn necessary to meet unmet demand. In more nascent markets like Italy, at the current pace of investment it would take over 100 years to deploy the necessary investment.鈥

To narrow the gap between supply and demand, Dominika Mocova, a senior analyst at JLL EMEA Living and Research Strategy, says: 鈥淕reater market transparency and understanding from planning authorities is necessary to unlock the full potential.鈥

Her colleague Julia Martin, JLL鈥檚 head of EMEA Student Housing, points out that PBSA is part of ensuring a good student experience: 鈥淭he affordability and provision of a well-rounded student experience continues to set PBSA apart from traditional rental accommodation.鈥

Ms Martin continues:

鈥淲ith developers now having a better grasp of the cultural nuances and design requirements through the different European countries, they are set to introduce the next generation of fit-for-purpose schemes, aimed at addressing the growing demographic student population as well as rising international student demand for quality accommodation across Europe. The continent is now home to the highest number of globally ranked universities, with 203 universities in the top 500 according to the 2024 QS World University Ranking. Given the current shortage of student accommodation in key cities and the vast untapped potential in countries such as Italy and Germany, addressing the standing imbalance between supply and demand will unlock a huge 鈧450 billion growth opportunity in the market, with PBSA playing a crucial role.鈥

Ireland: Construction causing delays

In 2024, Ireland鈥檚 education department examined the student housing situation in a paper called Funding the Future: An Annual Options Paper on the Cost of Higher Education 2024. It found that:
 
鈥淥n average there are three applications for every one student bed on campus. This does not take into account the Technological University sector. Those students who are unsuccessful in obtaining a place are forced into the private market.鈥
 
As reported in :

鈥淐onstruction cost increases, fuelled by the Russian invasion of Ukraine, Brexit and Covid, are having a significant impact on the supply and affordability of new rental accommodation for higher-level students 鈥 The impact on supply has been significant, with more than 10,900 units with planning permission within the university public and private student accommodation sector not having been activated.鈥

France: Danger of dropouts and student hardships

In Paris, a January 2024 study by SeLoger.com found that the number of available rentals for students in Paris dropped by 50% compared with 2023 and 73% over three years. Jacques Baudrier, deputy mayor for housing, told : 鈥淭he private sector has nothing left to rent, agencies are closing, and the crisis is exponential.鈥

Barbara Gomes, delegate for Tenant Protection in Paris, explained:

鈥淚f you can鈥檛 find housing, you give up your studies or move farther away, and the longer commutes add to fatigue. More than half of the students work part-time, and the risk of academic failure increases with such challenges.鈥

Spain: Tourism overload

In Spain, where soaring tourist numbers are squeezing residents out of the housing market, the government is taking action to provide more student accommodation for students enrolling in certain types of tertiary institution. A protocol was signed at the end of 2024 by the ministries of housing, economy, and universities that mandates that new private universities offer housing for their students.

In addition, reports The Guardian, Prime Minister Pedro S谩nchez鈥檚 government has instituted a tax of up to 100% on properties bought by non-residents from countries outside the EU, such as the UK. President S谩nchez defended the new policy by noting:

鈥淚n 2023 alone non-EU residents bought about 27,000 houses and flats in Spain. And they didn鈥檛 do it to live in them, they didn鈥檛 do it for their families to have a place to live. They did it to speculate.鈥

A persistent and challenging issue in higher education

International students have enough to think about without worrying about whether they will find affordable housing on or at least near to campus. Housing stress is closely associated with poor mental health, and it means that affected students鈥 attention is often 鈥 and of necessity 鈥 elsewhere than in their studies. In extreme cases, housing issues can cause students to drop out.

Stephen Madsen, writing for , a US-based economics and policy thinktank, notes: 鈥淎s the market continues to struggle with meeting the demand for affordable housing options, increasing on- or near-campus student housing can be an attractive amenity and marketable edge for universities looking to maintain or increase enrollment.鈥

But he also points out the sometimes-impossible solutions higher education institutions are up against:

鈥淯ltimately, financing and development costs remain the largest hurdle in addressing this issue for many institutions. Public funding for universities has fallen in many states over the past several decades鈥攍imiting many institutions鈥 ability to take on additional debt for capital improvements. During the same period, the cost of residential construction has risen significantly. The combined effect leads to a challenging development environment for higher education institutions, absent outside equity or public subsidy.鈥

Mr Madsen provides several examples of US colleges working hard and thinking creatively to try to come up with solutions:

  • 鈥淢iddlebury College in Middlebury, VT is providing a stipend, or financial incentive of $10,000, to take a half-year leave of absence to upper classmen to accommodate housing for incoming students. 
  • In Knoxville, TN, the University of Tennessee has rented out local Knoxville hotels to accommodate incoming students. 
  • Virginia State University, in Petersburg, VA built on-campus modular developments to house incoming students.鈥

Mr Madsen concludes: 鈥淔or [institutions] looking to ensure an affordable and inclusive education, the housing issue must continue to be addressed.鈥
 
For additional background, please see:

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The quest for affordable and accessible student accommodation: challenges and perspectives /2024/11/the-quest-for-affordable-and-accessible-student-accommodation-challenges-and-perspectives/ Wed, 13 Nov 2024 17:58:47 +0000 /?p=44479 The following is a guest post from Thomas Storgaard, a partner in the Property Team at Bridges Fund Management. Bridges is a Certified B Corporation that invests in needs-driven growth sectors that support the decarbonisation of the built environment. In England, there’s an annual shortfall of over 300,000 homes. Spain needs over 800,000 new homes…

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The following is a guest post from Thomas Storgaard, a partner in the Property Team at . Bridges is a Certified B Corporation that invests in needs-driven growth sectors that support the decarbonisation of the built environment.

In England, there’s an annual shortfall of over 300,000 homes. Spain needs over 800,000 new homes by 2027, France requires 500,000 new homes annually, and similar situations exist elsewhere.

These statistics underscore the scale of the housing challenge across Europe, complicated by interconnected barriers in policy and planning frameworks, land suitability, and risk-willing capital allocation.

For a generation whose hopes are increasingly shaped by access to both education and affordable housing, understanding these systemic obstacles alongside developing evidence-based, innovative solutions is therefore paramount.

The growing demand for student accommodation

Student accommodation faces similar challenges. According to a recent European PBSA Investing in the Future report by JLL, Europe鈥檚 student population is expected to grow by 10% by 2030/31, reaching 23.5 million, with half being international students.

Currently, just over two million purpose-built student accommodation (PBSA) beds serve less than 10% of the overall student population, leaving most dependent on private rentals or living at home.

The current PBSA shortage is estimated to be more than three million beds across Europe, and the current development pipeline will only meet 10% of the unmet demand once delivered. Addressing this gap will require an estimated 鈧450 billion.

Rising rents and student debt

Amid this backdrop, student housing operators have steadily increased rents, most recently with an 11% rise in 2023/24, while maintaining full occupancy. As a result, affordability has hit critical levels for students already burdened by rising living costs.

Housing is considered “affordable” if it consumes no more than 30% of a household’s gross income. However, according to data from Eurostudent, students spend 40鈥50% of their budget on accommodation, which would categorise them as “severely cost-burdened” according to traditional affordability benchmarks.

It comes as little surprise that average student debt upon graduation has been rising across Europe. Graduates from English universities hold the dubious distinction of being the most indebted, incurring an average of 拢44,940 in student debt in 2023鈥攁 141% increase over a decade.

Systemic barriers to development

At the heart of the student housing crisis lies a fundamental supply-demand imbalance. While the disequilibrium is exacerbated by several factors, the housing crisis is deeply rooted in systemic inefficiencies that extend beyond mere financial constraints.

One of the most significant obstacles to addressing housing shortages is the protracted timeline from the commencement of the planning journey to the completion of development. It is not uncommon for the entire journey to span close to a decade.

This slow development cycle reflects policy shortcomings rather than market failure. Prolonged development periods increase costs and amplify risks for developers and investors. Private capital must play a pivotal role in addressing the student housing crisis.

To attract it, establishing a responsive and predictable regulatory environment is essential; otherwise, investment will be deterred, consequently worsening housing shortages.

Unlocking value with innovation and sustainability

Among private market participants, there is an urgent need for developers and investors to embrace innovation and sustainability as a way to unlock value. The real estate and construction sectors have delivered underwhelming productivity improvements for decades, leading to inefficiencies and significant environmental impacts.

A long-term strategy focusing on creating circular, low-carbon buildings through the adoption of new technologies and methodologies can optimise operational efficiency and tenant comfort, leading to the creation of resilient and sustainable communities.

From an operational perspective, there is a need for the continued evolution of the PBSA product. Developers and operators have successfully created amenity-rich environments that prioritise the student experience, which according to PATRIZIA’s Residential Insights Report 2024, has contributed to the sector’s growing popularity among institutional investors.

Going forward, operators and investors should focus on developing inclusive, accessible student housing that caters to a diverse population at varied price points, achievable through a scaled back offering with fewer amenity spaces.

For additional background, please see:

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The three persistent themes in student accommodation: affordability, availability, and accountability /2024/10/the-three-persistent-themes-in-student-accommodation-affordability-availability-and-accountability/ Wed, 16 Oct 2024 20:48:21 +0000 /?p=44264 In 2022/23, only about half of student housing demand in the UK was met by purpose-built student accommodation (PBSA). That rather telling statistic was shared by Karen Best, head of accommodation at PwC, during a featured panel at the 黑料官网 Monitor Global Summit. Ms Best drew on PwC’s recent research in the field, alongside its…

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In 2022/23, only about half of student housing demand in the UK was met by purpose-built student accommodation (PBSA). That rather telling statistic was shared by Karen Best, head of accommodation at PwC, during a featured panel at the . Ms Best drew on PwC’s recent research in the field, alongside its insights into the financial condition of higher education institutions, to conclude that PBSA stock was likely to continue to lag behind student demand going forward.

Only about half of full-time university students in the UK were accommodated via PBSA housing in 2022/23. Source: HESA, PwC

Ms Best went on to outline that, of the roughly 740,000 PBSA beds in the UK, just under half (44%) are owned and operated by the universities themselves. The remaining 56% are privately owned and operated.

She believes as well that private investment is the more likely path to building capacity in terms of student housing: “Given the current and likely future financial pressures that the sector faces in the UK, there will continue to be constraints on all universities, even the largest, most reputable, and financially strong ones,” she explained. “This is causing universities to prioritise [capital spending] in [academic programming]. I expect to see universities looking for further support from the private sector to deliver new beds and to support refurbishing of a lot of the university-owned stock鈥hile there are and will continue to be new PBSA developments, the ability to deliver affordable accommodation in the places it is needed most continues to be a challenge.”

The affordability dilemma

The panelists all agreed that housing costs remain a significant issue for students. While price inflation has eased somewhat in the UK this year, there have been significant price hikes in the years following the pandemic.

“We’ve seen huge increases in pricing over the last couple of years, including some double-digit increases in some cities last year, which is quite staggering,” noted Ms Best.

Meanwhile, Hannah Chappatte, the founder & CEO of Hybr reported that there has been a huge rent increase this year in the HMO market (which refers to privately owned housing, a shorthand for which is HMO, or “a house in multiple occupation”). She noted as an example the case of Bristol where, “What we saw was that a lot PBSA developments were paused because of the impact of COVID. So the HMO market had a heyday over those two or three years where a lot of students that would have gone into PBSA went into the HMO market. And we saw consistently rents increasing by 15% year on year.”

The panel discussion revealed that there is a lot of nuance and granularity in the student housing market, and that you cannot measure the health or balance in the market simply by counting beds and heads.

“It can lead you down the wrong track if you are looking at here is how many rooms there are and this how many students there are,” said Ms Chappatte. “Really, you have to break it down into segments: this is the type of student, this is their budget, this is what they are looking for, and this is the type of accommodation we have in each city. Often you will see that it is not just a ‘rooms’ issue, it all comes down to price. It all comes down to budget and that is what we have to tackle: thinking creatively around how can we build more affordable units; not just more rooms.”

Not just how many but where

In spite of continuing strong student demand, PBSA stock continues to lag considerably behind demand in many study destinations due to a number of factors, including delays in the building planning process, labour shortages, and inflation in construction costs. Another inflationary impact for developers is the relatively high cost of financing in a climate of rising interest rates.

Ms Chappatte made the case that international education needs to draw lessons from other industries in its search for solutions. “We need to give investors conviction around how they can build and develop affordable units,” she said. “In our sector, we need to look at hospitality because hospitality has done that really well, You have Travelodge and Premier Inn that are really affordable brands that are also huge drivers of revenue. So why can’t we have the same in the residential sector where we have more self-service, more self-managed types of just rooms rather than these amenity spaces? I think there is so much that we can do [in that area] and that we are still so far behind in terms of residential versus hospitality.”

The panel acknowledged that prices typically fluctuate according to local supply and timing of booking — with the best rates being available for advance bookings and with prices tending to increase the close the student gets to programme start. This can be offset, however, in cases where local supply increases, causing prices to soften.

But the discussion also revealed that price is closely connected to location in student decision making. Ms Chappatte adds, “We’ve done a number of focus groups this year and rent is number one and location is number two, in terms of what [students] are prioritising in their search.” We can understand as well that that trade-off is carefully made and students definitely weigh proximity to campus very seriously in their decision.

Who is responsible?

The panelists also stressed the need for more and better collaboration between institutions, developers, students, government, and community stakeholders in order to boost local housing stocks.

“Universities need to speak to accommodation providers more,” concluded Arunima Dey, research manager with The Class Foundation. “How many students are they expecting? How many beds do they need? But it’s also extremely hard to build sustainable, future proof housing and provide all those amenities that students appreciate and keep rents affordable. [So we] need incentives for developers and investors in order for them to have a varied portfolio, and those incentives essentially needs to come from municipalities and [other levels of government]. Students are seen as a transient group but if there is more student housing than there is also more housing for all other demographics as well.”

She added, “For example, one of our partners, RESA, is a private PBSA provider in Spain. They [set a target] of having 70% of their beds to be affordable beds. They are able to do so because they have good ties with universities and with the city government. Operators and investors in the current climate cannot just do it by themselves.”

For additional background, please see:

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Hong Kong needs to build more student housing /2024/04/hong-kong-needs-to-build-more-student-housing/ Wed, 10 Apr 2024 21:52:17 +0000 /?p=42298 In his October 2023 address, Hong Kong Chief Executive John Lee set out some ambitious goals for the territory’s foreign enrolment, including that Hong Kong would, “Double the quota for non-local students in subsidised post-secondary institutions to 40%, and strengthen scholarships and related supporting facilities to attract more foreign and mainland students to study in…

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In his October 2023 address, Hong Kong Chief Executive John Lee set out some , including that Hong Kong would, “Double the quota for non-local students in subsidised post-secondary institutions to 40%, and strengthen scholarships and related supporting facilities to attract more foreign and mainland students to study in Hong Kong.” For comparison’s sake, the current non-local enrolment in Hong Kong was roughly equivalent to 25% of total post-secondary enrolment as of 2022/23.

However, a new report from real estate services firm JLL Hong Kong makes the point that the territory also needs to seriously factor an expansion of student housing in those plans. projects that non-local enrolment in Hong Kong higher education will reach 92,000 by 2027/28, up nearly 50% from 2022/23. Much of that growth will because, “Hong Kong is drawing increasingly more students from mainland China and across the globe,” as home to five of the world’s top 100 universities, and, JLL expects, it will attract increasing private investment in expanding student housing stock.

Non-local enrolment in Hong Kong higher education. Source: JLL

JLL estimates that 37,200 non-local students currently opt for private housing during their studies 鈥 a figure that is projected to grow to nearly 60,000 within the next four years.

The following graphic illustrates the current (2022/23) and projected breakdown of non-local enrolment by housing type, and indicates an estimated shortfall of more than 22,000 student beds by 2027/28.

Estimated distribution of non-local enrolment by housing type, 2022/23 and 2027/28 Source: JLL

That growing demand on available housing stock, and the looming housing crunch that it suggests, is in turn fuelling real upward pressure on rental rates.

鈥淩ental prices in Y83, the largest private student accommodation in the city, recorded an annual growth rate of over 10% since 2022. We observed that the rents of private student accommodation are soaring at an accelerated pace in the last 12 months and reached 15%, the highest [rate of increase yet],” said JLL’s Head of Capital Markets Oscar Chan. “Residential rents have increased by 7.0% since the borders reopening in early 2023, while the room rates of hotels also increased. The rents of private student accommodation are expected to grow further as the demand for student accommodation is currently underserved and the population of non-local student is growing rapidly. Private student accommodation will be a new investment property asset鈥.

The report makes it plain that the growing supply-demand gap in housing could put a serious curb on Hong Kong’s plans to expands its non-local student base: “The overheated leasing market, coupled with escalating rents, poses a significant challenge to finding suitable and affordable private accommodation. The scarcity of reasonably priced good quality accommodation options could dissuade international students from selecting Hong Kong as their preferred destination for higher education.”

In all of these respects, Hong Kong is repeating the lesson learned by so many other destinations in recent years: that any goals for significant growth in international enrolment have to be accompanied by a similar expansion of student housing stock.

For additional background, please see:

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Student housing investments jumped in 2022 but still lag behind demand /2023/03/student-housing-investments-jumped-in-2022-but-still-lag-behind-demand/ Wed, 22 Mar 2023 16:34:04 +0000 /?p=38206 A new report from online booking service Amber Student focuses on trends in student housing in three key study destinations: the United States, United Kingdom, and Australia. Reflecting similar findings in another recent analysis from industry research specialists BONARD, Amber reports a notable increase in investments in student housing in 2022. This includes US$7 billion…

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A new report from online booking service focuses on trends in student housing in three key study destinations: the United States, United Kingdom, and Australia.

Reflecting similar findings in another recent analysis from industry research specialists BONARD, Amber reports a notable increase in investments in student housing in 2022. This includes US$7 billion in new housing developments in the UK, US$6 billion in the US, and another US$3 billion in Australia.

BONARD reports an additional US$5 billion investment in purpose-built student accommodation (PBSA) across Continental Europe in 2022. Amber estimates that the global value of housing investments in 2022 exceeded US$33.5 billion.

Even so, student demand for housing continues to considerably exceed supply in most destinations, to the point where access to affordable housing is an increasingly pressing issue for students when planning for study abroad.

Amber’s analysis estimates that roughly 10% of students in the UK face issues while searching for accommodation, noting that, “There is a huge demand and supply gap: With the 2023 intake starting, at least 207,000 students are likely to face a crisis situation with their accommodation.”

Amber underscores the point by noting that roughly two in ten students (21%) globally are accommodated in university accommodations. The report adds that, “As the PBSA sector continues to expand, the supply crunch has caused 53% of the global student population to opt for private accommodations in major education markets.”

Proportion of student housing by accommodation type for selected destinations, 2022. Source: Amber Student

With the real growth in PBSA beds lagging behind demand, large percentages of students are in privately owned housing, sometimes referred to as the HMO segment. The term refers to “a house in multiple occupation”, typically with three or more tenants sharing communal areas such as a kitchen, bathroom, or other living space. As a result, the HMO space dwarfs the PBSA sector in some destinations. For example, Amber sizes the HMO market at US$225 billion in the US and roughly US$32 billion in the UK. This compares to a PBSA sector valued at US$65 billion in in the US and US$73 billion in the UK.

The report notes as well that private housing providers that target student segments are increasingly aligning their offerings with those of PBSA providers: “Globally, HMOs are revamping their offerings to provide higher-quality accommodations. As students have become accustomed to the modern amenities offered by PBSAs, they are increasingly seeking housing options near universities that offer similar features and amenities.”

Based on its 40,000 student bookings in 2022/23, Amber reports that the vast majority of students arranging accommodation in the US, UK, and Australia prefer a private bedroom with private bathroom, with the most in-demand amenities including high-speed WiFi, 24-hour security, on-site laundry, and fitness centre.

For additional background, please see:

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Housing issues persist in a number of student cities /2022/09/housing-issues-persist-in-a-number-of-student-cities/ Wed, 28 Sep 2022 20:34:34 +0000 /?p=36968 Rising energy costs, inflation, and surging interest rates are all contributing to a student housing crunch in many study destinations this year. The situation is particularly acute in Ireland, where issues around cost and availability of student housing have been present for years. The situation, however, is notably worse as the new academic year gets…

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Rising energy costs, inflation, and surging interest rates are all contributing to a student housing crunch in many study destinations this year.

The situation is particularly acute in Ireland, where issues around cost and availability of student housing have been present for years. The situation, however, is notably worse as the new academic year gets underway. reported recently that Irish universities are dealing with a spike in deferred applications this semester, with many students citing the inability to find a place to live as the reason for delaying their studies.

“Nearly one-third of students who have deferred their place at University of Galway have done so because of accommodation issues,” said the paper, “while Trinity College Dublin (TCD) said its deferral requests are up 20% on last year.”

Meanwhile, University of Galway said that of the 300 undergraduate deferrals it has so far received, nearly a third cited issues with accommodation.

The situation is similar in Scotland, where the University of Glasgow has advised incoming students to “suspend your studies or withdraw”, and even to avoid travel to Glasgow, until they have secured housing. “Hundreds of students have returned after the summer break with nowhere to stay due to a shortage of available flats and soaring rents,” adds .

“Across the UK, there has been unprecedented demand this year for university-provided accommodation,” adds another recent statement from the . “Our student accommodation is oversubscribed. We have made strenuous efforts to find suitable alternative options in Manchester, however this has proved exceptionally challenging this year.”

The university has taken a number of extraordinary steps, including offering incoming students a financial incentive of 拢2,500 to give up their spot in student housing. Roughly 130 Manchester students will be staying in Liverpool this year, which is about a one-hour train ride away, but with a 拢100 per week subsidy from the university to help offset the additional travel expenses.

Surging demand is driving rents higher

As is the case in many other destinations this year, the surging demand for student housing is also driving up rental rates across Germany. reports that rents across the country have increased by 6% this year, compared to a year prior, with Munich and Berlin among the most expensive cities for students.

The report quotes Professor Michael Voigtl盲nder, a real estate expert at the German Economic Institute, who explains that is not only surging demand from students that is contributing to the housing crunch this year but also larger economic trends as well. Professor Voigtl盲nder cites rising energy costs (and thus an interest in smaller, more affordable rental units) and continuing interest rate hikes (leading more people to rent rather than buy this year) as some of the macro factors that are driving up the cost of rental housing.

As the housing and travel subsidies noted above would suggest, pressure is growing as well on institutions and schools to provide additional assistance to incoming students to secure suitable accommodation. This has placed a considerable additional demand on staff and on support services for students. As the University of Manchester has said, “We have made strenuous efforts to find suitable alternative [housing] options, however this has proved exceptionally challenging this year.”

We should note as well that housing issues extend well beyond Ireland, the UK, and Germany, with the Netherlands and Canada, among others, also reporting increasing challenges around student accommodation this year.

For additional background, please see:

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What if there is no room? The link between student housing and enrolment capacity /2022/07/what-if-there-is-no-room-the-link-between-student-housing-and-enrolment-capacity/ Wed, 06 Jul 2022 15:02:42 +0000 /?p=36402 A recent blog post from Alex Usher, president of the industry consultancy Higher Education Strategy Associates, makes a case that housing supply is looming as a significant issue for foreign enrolment in Canada. The biggest pressure on future growth in student numbers, he argues, “is going to be about housing, and the way that some…

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A recent blog post from Alex Usher, president of the industry consultancy , makes a case that housing supply is looming as a significant issue for foreign enrolment in Canada.

The biggest pressure on future growth in student numbers, he argues, “is going to be about housing, and the way that some institutions have been packing in students without regard to local housing supply, which contributes to the steep rise in housing costs not just for international students but for all renters and first-time home buyers鈥e are letting in hundreds of thousands of students, and not building any new housing. Combined with a variety of other factors that are taking low-income housing off the market, it does not take a degree in economics to realize that there will be a shortage of spaces for anyone looking for low-rent housing.”

And as we noted in a recent, related report of our own, affordable, quality student housing is an important dimension of capacity for any study destination. More limited housing supply pushes up living costs for domestic and international students alike, and, beyond budgeting, can intrude otherwise on the quality of the student experience and destination competitiveness. At the same time, demand for housing is an important indicator of overall student demand for a particular destination.

However, in spite of a burgeoning purpose-built student accommodation (PBSA) sector that is adding thousands of new beds in leading study destinations around the world each year, we are already seeing some significant strains in terms of housing availability in some destinations.

The Netherlands is one high-profile example of this, where a booming international student population has placed renewed pressure on limited housing stock, and especially so in cities that are home to multiple universities, including Amsterdam.

“At the beginning of [the 2021/22 academic year] there was a shortage of more than 26,000 student rooms throughout the Netherlands,” reports , which it attributes to, “A domino effect: due to the general tightness in the housing market, graduates [living] in their rooms for longer, and the [disrupted] flow of students.”

The housing crunch has led several Dutch universities 鈥 including Maastricht, Utrecht, and Groningen 鈥 to recently take the extraordinary step of cautioning international students not to come to the Netherlands this year unless they have secured housing before they arrive. “Universities have been pulled into the centre of the Netherlands鈥 mounting housing crisis, as demand from an ever-growing influx of international students outstrips scarce domestic supply,” reports . “Previous years have seen newcomers relegated to campsites and most universities now have standard warnings to applicants not to continue their enrolment until they secure accommodation.”

Overcrowding in Ireland

A similar story is playing out in Ireland this year, where housing and housing affordability have long been important issues for international educators. The Irish Council for International Students (ICOS) raised the alarm last month over a “student accommodation crisis [link to https://www.internationalstudents.ie/news/student-accommodation-crisis-leading-exploitation-international-students-irish-council]” in the country, and the issue has been the subject of feature media coverage in recent weeks.

One recent report from highlights the case of students “living in substandard accommodation in where they were paying up to 鈧600 each per month to rent a bunk bed space in crowded rooms.”

Indeed, a 2020 ICOS survey of English language students in Ireland found that:

  • Almost half of respondents said that they were sharing a room with three or more people;
  • Another 11% reported sharing a room with six or more other people;
  • Only 10% of responding students said they had their own room.

ICOS is now calling on the Irish government to strengthen legislation relating to housing and overcrowding. Speaking to the , Executive Director Laura Harmon said, “We are increasingly concerned that [the housing situation] is worsening and there is a lack of availability. We will see a real breaking point in September when we see all of the students back again.鈥

In a related statement, Ms Harmon added:

“International students are more vulnerable when it comes to accommodation as they often arrive in Ireland with little knowledge of the rental market landscape, meaning they run a higher risk of being scammed or exploited. Rising rents and a lack of available properties to rent forces many students to live in overcrowded accommodation鈥he accommodation crisis is also having an impact on Ireland鈥檚 reputation abroad as a study destination. This could have serious ramifications for Ireland鈥檚 education sector as a whole.”

Various public and private-sector actors are moving to expand housing stock, with some of the most significant progress coming from privately held PBSA developers and providers. A recent report from industry research specialists highlights that, as of September 2021, there were roughly 230,000 beds in the PBSA pipeline across Europe alone, including both facilities under active construction as well as those still in the planning stage. The report further indicates that just over 50,000 new beds were added throughout Europe in 2021, with another 72,000 expected in 2022, and a further 48,000 beds expected in 2023.

For additional background, please see:

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