As economists and investors watch for signs of the next U.S. recession, investors in Student Housing can pretty much take no notice and relax. That is due to the fact, that one of Student Housing’s key fundamentals is its cyclical neutrality.
Unlike most other asset classes, its fortunes continue to rise whether in time of boom or bust. It is simply driven by the global demographic and cultural changes that have been seen over the past few decades and which seem headed firmly into the same territory in the upcoming decades too.
The OECD amongst others predict rising numbers of students globally and increasing mobility amongst those students. Almost 100 million* additional students are expected to join the global study force over the next ten years. *OECD
Add to that the improving standards of accommodation students now demand, their greater need for connectivity, security and convenience and you have a recipe for rising Occupancy Rates against a backdrop of globally-low Provision Rates that will require unprecedented investment into the housing that will meet these needs.
We shouldn’t forget that affordability must be kept in mind and that we can only counter social exclusion by ensuring good quality accommodation is available for as many young people as possible. Fortunately, increasing provision of Higher Education (especially when taught in English) in less expensive countries such as Poland and the wider CEE, can provide high quality learning in welcoming countries at costs that don’t break the bank.
So, if you are looking for a lower risk, less cyclically-vulnerable investment, look no further than Student Housing.
Is Recession on the cards?
However, if you are investing in other perhaps more “traditional” assets, the recent article provided by Reuters makes for a compelling read. They point to twelve indicators that could be evidence that a U.S. recession is on the cards as early as 2020. You can read their excellent analysis here.
Whether or not you deduce that recession is on the cards, if you’d like to relax and decide to invest into recession-proof Student Housing, get in touch with us at Studivest.