Campus adjacent and high-rise student properties see higher net rental income, NMHC annual survey showed.
By Paul Bergeron | October 5, 2021 | GlobeSt.com
Student housing operators were adversely affected by the COVID-19 pandemic in 2020, according to a report issued Monday by the National Multifamily Housing Council (NMHC).
The 2021 NMHC Student Housing Income and Expense Survey includes detailed descriptive statistics for the 2020 calendar year income and expense statements of 953 private off-campus student housing properties, encompassing nearly 185,000 units and 529,000 beds across 47 states.
In 2020, many properties incurred higher vacancy costs and offered increased concessions in order to attract tenants.
Among a set of same-store properties, vacancy expenses as a percentage of gross potential rent increased between 2018 and 2020 by a median of 1.4 percentage points.
More specially, a majority (61.5 percent) of properties recorded an increase in vacancy costs over the two- year period. Similarly, nearly half (44 percent) of properties increased their concession offerings as a percentage of GPR over the last two years, compared to just 28.1 percent of properties that lowered their concessions (the remaining 27.9 percent of properties did not offer concessions in either 2018 or 2020).