Student housing investment property here in Boulder and around the country is becoming a hot ticket item. While there are many factors influencing the demand, two come glaringly to mind; an increase in enrollment at the University of Colorado, and a lack of new student housing units being brought online by the University. Today we are going to look at how Generation Y will effect the Boulder Student Housing Investment market.
Generation Y, also known as the Echo Boomers, is the larger age group that follows the much tinier Gen X crowd. Commonly thought to be born sometime around 1985 to 2001, this generation is currently between 10 and 26 years old. While some have already hit college age, it is thought that the increased numbers of students that are coming of age for college will help to drive demand AND prices up for off site housing.
Michael Zaransky, author of Profit by Investing in Student Housing: Cash In On the Campus Housing Shortage, feels that buying now is a great investment because of the increasing number of students. “About 80 million ‘echo boomers’ will turn eighteen over the next ten years,” he says. This glut of students will tax an already overburdened Boulder Student Housing situation. For more on the reasons why, check out our post, Boulder Investment Properties – In A Class By Themselves.
Investing In Boulder Student Housing
There are two primary groups of investors who can cash in on this upcoming real estate investing opportunity.
Parents who want to provide housing for their children (and make a little bit of the cost of college back). Investing in a multi-unit or multi bedroom property in the Boulder area is a sound idea. Using this method of providing housing for your offspring will help defray the cost of housing and will allow you to build up your investment portfolio.
You can use this property while your child (or children) are attending CU, then hold it for continued income or sell it once your child graduates.
Real estate investors who are looking for a solid investment in a high-occupancy location. Property prices in Boulder have not fluctuated as much as the rest of the nation. Currently student housing prices are stable and relatively fixed. Counting that, along with an increased demand from the Generation Y crowd and you have a recipe for profit.
Student Housing Investment Property and Generation Y Conclusion
In addition, University plans call for very few additional on campus options for students. Despite new buildings at the Williams Village site at Baseline and 30th St. in Boulder, other on campus housing options are being taken off-line for updating. Over the next 10 years, the University is expected to add only marginal amounts of on campus housing options for students.
Taken together, these developments add up to a strong student housing market which should remain stable for years to come. If you would like to find out more about how to invest in the Boulder Student Housing real estate market, give me a call today! 720-306-8017