Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

STUDENT HOUSING: DEMAND DRIVERS Continuing employment opportunities for graduates driving student housing demand

• Enrollment in college and universities continues to rebound from the pandemic era, with forecasts suggesting the total number of students will trend once again toward 20 million towards the end of the decade. This growth will be fueled by a combination of the size of the Gen Z population domestically, as well as a continued influx of international students. • The earning potential of college educated individuals continues to maintain a 85%+ premium over the population with only a high school degree. Advanced degree earnings maintained even greater differences. • Students increasingly prefer to live off-campus, with highly limited and aging on-campus accommodations. In some cases, off-campus accommodations can be more cost-effective as well, with on-campus options often including a number of ancillary costs. Off-campus neighborhoods, amenities and nightlife can also be desirable over on-campus options. • Students also have preferences for properties that offer a range of amenities, such as fitness centers, study lounges, and communal spaces. Investors are responding by developing and upgrading such facilities to meet economic and lifestyle preferences.

Mean Earnings by Education Level

U.S. Enrolled College / University Students

$180K

25M

$160K

$140K

20M

$120K

$100K

15M

$80K

$60K

10M

$40K

$20K

5M

$K

High School Graduate College Degree Masters Degree

M

Professional Degree

Doctoral Degree

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Source: Moody’s Analytics, Cushman & Wakefield Research

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