The General Manager of the Student says luxury loses appeal

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Consumers are increasingly worried about the state of the economy, and this affects another real estate sector – student housing.

The growth of rent in the sector slowed to only 0.9% in July in July in 200 schools surveyed by Антий. The average advertised rent fell to $ 905 per bed, from 1.4% drop from 98. Peak in March “How are operators struggling to lease the remaining inventory”, according to the report of Charles.

For perspective, from October to July, the growth of rent was recorded 2.8%, less than 5.7% recorded in the same period a year earlier and significantly below 6.9% seen a year ago.

“What we see is it falls on top and bottom,” said Robert Bronstein, founder and director of Scion, one of the largest owners of the country and student housing operators.

The scion has approximately 95,000 beds in 83 schools in 35 countries, with over 10 billion dollars in management assets.

Bronstein said that the lower end of the market, ie students / parents fought the most to afford student housing, are now returning to historical, cheaper renting homes on the periphery of campus. Senior student / parent who also changes the course.

“I think people say,” You know what, there is a building that has three years, and it costs 30% less than a whole new building, and I will not use a warm bath on the roof. I’m going to the roof. I’m going to go with the most expensive option “” I said Bronstein. ”

Students, said, more seriously in their living spaces and preferred rooms for associates and remote interviews through golf simulators and film theaters, which were all a decade. The convenience of the climax, said, no longer drives. Cost savings are now the most important.

Scion game in the middle market, gaining properties mainly in big schools, including Florida, Alabama, Oklahoma and Mississippi, as well as Texas A & M and Clemson university.

“We were very active last year. We are very active this year. This can prove that this is the most active year,” Bronstein said.

He said that after the counseling, investment in large, leading public universities was crossed – and accelerates.

“Top, 40, 50, 60,000-student public schools after the year of registration in record enrollment. They do not even come close to the housing needs in these markets,” Bronstein said, noting that both private schools and private schools participate.

“I think you can’t be enough Bilska about Madison, Visconsin or Ann Arbor, Michigan or in Athens, Georgia or Gainesville, Florida,” he said.

Excellent, he said, and it also gives a scion acquisia advantage in today’s high interest environment.

“We look at it, okay, this is the market we want to be. We will not be in it with three or four thousand beds and several thousand beds and several thousand beds and we have the right lever.

Bronstein said that Bullish because there was a fall in new development due to higher costs for construction and capital. This will increase the value of the existing asset scion.

In its 2025. Year of the Residential Stan Report, a commercial plotar for the lender and Dunlop envisions a “dynamic” year for the sector.

“After a period of controversial scope of the transaction due to macroeconomic translations, the market is that interest rates are stabilized, institutional capital is built by condemnation and enrollment at the main universities continues to grow”, in accordance with the report.

It notes that the Southeast Conference (SEC) remains the most active investment conference in the student’s playee, with a large ten gaining momentum as higher schools see the growth of enrollment records.

The same switching from higher costs set by bells and a whistle that said Bronstein was also pointed out.

“While luxury benefits once defined the sector, the latest trend is a shift towards functionality, practicality and accessibility,” the report said.