Introduction

Student housing has evolved from a niche subset of multifamily real estate into a distinct institutional asset class. While student housing communities often resemble traditional apartment complexes, the operational dynamics, leasing structures, tenant demographics, and demand drivers make them unique investments within the Delaware Statutory Trust (DST) marketplace.

“Student housing has matured significantly over the past two decades,” says Al DiNicola. “Today’s properties often rival Class A multifamily communities in terms of amenities, technology, and resident experience.”

For many DST investors, student housing offers a compelling combination of recurring demand, diversified income streams, and exposure to some of the nation’s strongest university markets.

Why Student Housing Remains Attractive

At its core, student housing serves a simple need: students require a place to live while pursuing higher education.

Unlike many commercial real estate sectors that are heavily dependent on economic cycles, student housing benefits from long-term educational demand and enrollment trends.

“Education has historically demonstrated remarkable resilience,” notes DiNicola. “During periods of economic uncertainty, many individuals return to school to develop new skills and improve career opportunities.”

The growth of large public universities, continued international enrollment, graduate programs, and research institutions continues to support demand for well-located off-campus housing.

The Importance of University Selection

Not every university market is suitable for student housing investment.

Successful student housing DSTs are often located near large universities with:

  • Strong enrollment growth
  • National recruiting footprints
  • High retention rates
  • Significant research funding
  • Limited on-campus housing inventory
  • Strong athletic and alumni support

Historically, investors focused heavily on schools within the former Power Five conferences. However, conference realignment has dramatically changed the landscape. “Today’s investors should focus less on conference labels and more on enrollment, housing supply, and long-term institutional strength,” says DiNicola.

The New Power Conference Landscape

Following major conference realignment, the traditional Power Five has effectively become the Power Four:

  • SEC
  • Big Ten
  • ACC
  • Big 12

Many of the nation’s largest student housing markets are now concentrated around universities in these conferences.

Examples include:

  • University of Texas, Austin flagship university
  • University of Georgia, Athens flagship university
  • University of Florida, Gainesville flagship university
  • Ohio State, Columbus flagship university
  • Penn State University, University Park flagship university
  • University of Alabama, Tuscaloosa flagship university

However, conference affiliation alone is no guarantee of success.

“We look for enrollment stability, population growth, housing shortages, and institutional commitment,” explains DiNicola. “A university with 40,000 students and limited housing may present a stronger opportunity than a smaller school in a major conference.”

Understanding Student Housing Leasing Structures

One feature that distinguishes student housing from conventional multifamily properties is the lease structure.

Most student housing properties lease by the bed rather than by the apartment. A four-bedroom unit may generate four separate leases. “This creates diversification within the unit itself,” says DiNicola. “If one student leaves, the entire apartment isn’t necessarily vacant.” Parents frequently act as guarantors on leases, providing an additional layer of financial support. “Many student housing operators benefit from having multiple parental guarantees behind the lease obligations,” notes DiNicola.

Student Housing in 2026

The student housing sector has changed dramatically since the pandemic years.

Today’s primary drivers include:

Enrollment Recovery

Many flagship universities have experienced record application volumes. Selective public universities continue to report strong demand despite demographic concerns in some regions.

International Students

International enrollment has rebounded significantly and remains a major contributor to demand. Foreign students often prefer professionally managed off-campus housing with modern amenities and strong security systems.

Housing Shortages

Many universities have struggled to expand on-campus housing fast enough to meet demand. As a result, private student housing developers continue to play an important role in supplying beds near campus.

NIL and Athletics

The introduction of NIL compensation has increased the visibility and competitiveness of major athletic programs. Large athletic conferences continue attracting students, alumni donations, and institutional investment that can indirectly support housing demand. Congress is attempting to address several issues surrounding the transfer portal and other demands and stress on college athletics.

Amenities Have Changed Dramatically

The stereotypical college apartment of previous generations bears little resemblance to today’s student housing communities.

Modern student housing frequently includes:

  • Private bedroom and bathroom suites
  • High-speed fiber internet
  • Dedicated study lounges
  • Podcast and content creation rooms
  • Fitness centers
  • Resort-style pools
  • Package management systems
  • Controlled access technology
  • Mobile app resident services
  • Electric vehicle charging stations

“If you toured some of today’s student housing communities without knowing the tenant base, you might assume you were visiting a luxury multifamily property,” says DiNicola.

Technology and Security

Technology has become a critical competitive advantage.

Students and parents increasingly expect:

  • Smartphone access control
  • Smart locks
  • Video surveillance
  • Package delivery systems
  • Digital leasing platforms
  • Online maintenance requests

“Parents place tremendous value on security and convenience,” explains DiNicola. “Technology investments are no longer optional amenities—they’re expected.”

Key Evaluation Factors for Investors

When evaluating student housing DST offerings, investors should consider:

University Fundamentals

  • Enrollment trends
  • Retention rates
  • Graduation rates
  • Research funding
  • Athletic conference alignment

Market Fundamentals

  • Supply versus demand
  • Occupancy levels
  • New development pipeline
  • Rent growth history

Property Location

Walking distance to campus remains highly desirable.

Properties near:

  • Academic buildings
  • Athletic facilities
  • Retail centers
  • Transportation corridors

often command stronger demand.

Sponsor Experience

Student housing requires specialized operational expertise. “The sponsor’s experience managing student housing is often just as important as the real estate itself,” says DiNicola.

Conclusion

Student housing has firmly established itself as a standalone institutional real estate asset class. Supported by enrollment demand, limited housing supply, parental guarantees, and evolving university ecosystems, student housing continues to attract institutional capital and DST investors seeking passive real estate ownership.

“Well-located student housing near strong universities has demonstrated durability across multiple market cycles,” concludes DiNicola. “The key is selecting the right market, the right sponsor, and the right property.” In the next installment of this series, we will examine Senior Housing and the demographic forces shaping that rapidly growing asset class