California is still the most desirable place for development due to overwhelming popularity with both US and overseas students. However, the challenge is the difficulty and long lead time needed to acquire the land and permits for development, which most investors/developers who haven't had any experience with California tend to underestimate. New York has a similar challenge, with the additional complications due to lack of land.
What are the markets to watch for student housing development in the U.S.?
We are a Chinese wealth management company with offices in Beijing, Shanghai and Hong Kong. We recently completed a successful student housing investment in Australia, and want to profit from the asset class’s upward trajectory in the U.S. We’ve talked with developers in New York and Los Angeles. We are open to ground-up construction or purchase of existing assets. What other cities are seeing a strong student housing market?
Are you looking to target students in colleges and universities only or a combination of colleges/universities and high schools? Northern Virginia, D.C. and Maryland are good options because of the proximity to a number of universities open to international students and great school districts for high schools (VA and MD for public and private school; DC for private schools).