Student housing CEO says luxury is losing its appeal

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Consumers are rapidly concerned about the situation of the economy, and it is yet to affect another real estate sector – student house.

In July 200 schools surveyed by Yardi increased to 0.9% of the rent in the region in July. According to Yardi’s report, the average advertised fare asking for the fare $ 905 per bed, due to a decrease of 1.4% from $ 918 peak in March, according to the Yardi report, “the remaining inventory struggles to lease. ,

For perspective, through October to July, the hike hike was 2.8%, a year ago, less than 5.7% recorded during the same period and below 6.9% viewed a year earlier.

“What we are seeing is falling up and down,” said Robert Bronstein, the founder and CEO of Scone, one of the country’s biggest owners and one of the operators of the residence.

SCION has about 95,000 beds in 83 schools in 35 states, with assets more than $ 10 billion under management.

Bronstein said that the lower end of the market, namely, students who were struggling the most to bear the residence, are now going back to more historical, cheap rented houses on the outskirts of the premises. High end student/guardian is also changing the course.

“I think people are saying,” you know that, there is a building that is three years old, and its cost is 30% less than a new building, and I was not going to use the hot tub on the roof somehow. I am going to go with less expensive options, “said Brontein.

The students said, he said, he is serious about his living places and prefer golf simulators and co-functioning places and distance interview chambers on movie theaters, which were all anger a decade ago. High-end facilities, he said, no longer occupy. Cost savings are now paramount.

Scion plays in the mid -market, with mostly assets in large schools, including Universities of Florida, Alabama, Oklahoma and Mississippi as well as the University of Texas A&M and Cla with the Universities.

“We were very active last year. We are very active this year. It can be the most active year,” said Bronstein.

He said that after Kovid, there has been a change in investment towards large, major public universities – and it is intensifying.

“Top-level, 40, 50, 60,000, 60,000, 60,000, Flagship Public Schools. They are posting year-on record enrollment growth. They are not coming close to being able to meet the housing needs in these markets,” Bracestein said.

“I don’t think you may be sufficiently faster in Madison, Wisconsin, or N Arber, Michigan, or Athens, Georgia, or Gainsville, Florida,” he said.

When growing up, he said, also gives the scone the benefit of acquisition in today’s high-onion-rate environment.

“We are looking at it, well, this is a market in which we want to be. We are not going into it with 300 beds. We are going to have three or four assets and several thousand beds and are real operating leverages,” said Bronstein.

Bronstein said it is rapid as new growth has declined due to high costs for construction and capital. This will increase the value of the current assets of the Scion.

In its 2025 student Housing Outlook report, commercial real estate lender walker and Dunlop predicted “dynamic” year for the region.

According to the report, “After a period of slow transaction due to macroeconomic headwinds, the market is rebounding because the interest rates are stabilizing, institutional capital imposes punishment, and enrollment in major universities continues to increase.”

It was noted that the South -East Conference (SEC) student remains the most active conference for housing investment, seeing big school record enrollment growth with the speed of Big Ten.

It also exposed the same shift from high -cost buildings, which is standing with bells and whistles, which was noted by bronstein.

“While luxury features once defined the region, the latest trend is a change towards functionality, convenience and strength.”