Privately owned student housing is a fast growing sector, with 47,700 new beds expected to come to market in these properties in the fall 2016 semester alone. CNBC staffer Diana Olick takes a look at this expanding sector which is becoming a staple of large state universities especially those universities in the southeast.
Olick spoke with J.J. Smith, chief operating officer of real estate developer CA Ventures which owns student apartments in several states. Smith, like other developers, see the long run of this burgeoning sector and explained how location has also contributed to their popularity:
"More recently what we've seen is pedestrian-oriented infill walkable high-rise construction at major universities and those are becoming much more in favor from an institutional capital perspective. They're seen as more stable because they have the location more than anything else," said Smith.