Student housing CEO says luxury is losing its appeal

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Consumers are increasingly concerned about the situation of the economy, which affects another real estate sector – student houses.

In July 200 schools participating in the survey by Assist, the rent growth in the sector fell only to 0.9%. According to the help report, the average rent, which wants to ask for rent, fell to $ 905 per bed, decreased by 1.4% from the $ 918 summit in March.

For perspective, between October and July, the rent growth is 2.8%, less than half of 5.7% recorded in the same period a year ago, and 6.9% seen a year ago.

Robert Brontein, the founder and CEO of Scion, one of the largest student housing holders and operators in the country, said, “What we see is falling on top and bottom.”

Scion has approximately 95,000 beds in 83 schools in 35 states and is an asset under management.

Brontein, the lower end of the market, that is to meet the students of the students/parents, the most historical, campuses at the foot of the more historical, cheaper rental houses, he said. The high last student/parent also changes the course.

Brontein says, “Do you know people ‘, there’s a three -year -old building, and I won’t use 30% less than a brand new building and I won’t use a hot bathtub on the roof. I will go with a cheaper option.’

The students said that they are increasingly serious about their living spaces and preferred their joint working areas and remote meeting rooms on Golf Simulators and Cinema Halls, which were anger ten years ago. High -level possibilities, no more occupancy, he said. Cost savings are now very important.

Scion, Florida, Alabama, Oklahoma and Mississippi universities, and Texas A&M and Clemson University, including majority in large schools, playing in the middle market.

“We were very active last year. We are very active this year. This may be the most active year.” He said.

After Covid, the big, flagship, said there was a change in investments in state universities and accelerated.

“The highest level, 40, 50, 60,000 students are published every year for record registration growth every year. They do not even approach the housing needs in these markets.” He said.

“Madison, Wisconsin or Ann Arbor, Michigan or Athens, Georgia or Gainesville, Florida, I don’t think you can rise enough.”

He said it would be great, and he also said that he gave Scion an advantage of purchasing in today’s high -interest environment.

“We are looking at him, okay, a market we want to be in. He said.

Brontein said it was rising because there was a decrease in new development due to higher costs for construction and capital. This will increase the value of Scion’s existing assets.

In the 2025 student housing view report, they foresee a “dynamic” year for the commercial real estate lending Walker and Dunlop sector.

According to the report, “After a slow trading volume due to macroeconomic winds, as the interest rates are balanced, corporate capital prisoners and registration to large universities continues to increase.”

He said that the Southeast Conference (SEC) remained the most active conference for student housing investment and Big Ten gained momentum as he saw the record enrollment of larger schools.

In addition, Brontein stressed the same shift from higher cost buildings stacked with bells and whistles.

“Luxury opportunities once described the sector, the latest trend is a change at functionality, comfort and affordable price.” He said.