New Study Looks at Off-Campus Student Housing

Approximately 53.6 percent of rental income from off-campus student-housing properties is spent on total operating expenses, according to a new benchmarking survey from the National Multi Housing Council’s National Student Housing Council. Other top expense categories include total compensation (11.9 percent), utilities (11.0 percent), taxes (9.0 percent), and maintenance and repairs (5.2 percent).

Based on property age, total operating expenses were slightly lower for properties built since 2003 (52.3 percent) compared to 54.1 percent for properties built between 1998 and 2002 and 54.6 percent for properties built prior to 1998. Compensation was higher for older properties (14.0 percent of expenses) compared to 10.9 percent and 11.0 percent respectively for properties built since 2003 and properties built between 1998 and 2002.

The Northeast region spends significantly less on total operating expenses — 39.5 percent — compared to 56.6 percent in the Midwest.

Watch an interview with Jack Kern, managing director of Kern Investment Research, to learn about the challenges that may shape the future of student housing.