The demand for purpose-built student accommodations (PBSA), or housing built expressly for students, is on the rise. Investors and developers are taking note of this growing market segment, particularly in college towns where opportunities have the potential for strong returns.

At the center of this transformation is the need for data-driven insights, and Hubexo’s location analytics is the ultimate tool to find new opportunities in this steadily rising market. Let’s explore why PBSA is the future of student housing, and how Hubexo can help investors enhance their investment portfolios.

The Rising Demand for Purpose-Built Student Housing

According to studies by Zion Market Research, the PBSA market is projected to grow significantly in the next decade, The global PBSA Market size was worth at around USD 9.1 billion in 2022. The market is expected to to reach a value of USD 14.1 billion by 2030. In the U.S., rising college enrollments are driving demand, According to the National Center for Education Statistics “total undergraduate enrollment is projected to increase by 9 percent (from 15.4 million to 16.8 million students) between 2021 and 2031”, many of whom require off-campus housing. This trend is coupled with changing tenant expectations: students today seek high-quality housing with amenities like fitness centers, study lounges, and sustainable building features.

Spotting Opportunities in Lesser-Known College Towns

While cities like Indiana, Pa., Lubbock, Texas, and Williamsport, Pa. are well-known for student housing investment, lesser-known college towns often yield higher-than-average returns due to lower competition and untapped demand. According to Hubexo’s Student Housing tracker, locations with significant college student populations like Atlanta, GA., Tallahassee, FL. and Columbia, SC. are emerging as attractive markets for PBSA development.

Geospatial data and location analytics from Hubexo allow investors to:

• Analyze enrollment trends and local housing demands.
• Gain insights into existing student housing developments.
• Pinpoint areas with higher rental yields and lower upfront costs.

Top College Towns for Student Housing Development

Here’s a look at some promising locations for PBSA investment, by number of projects:

Atlanta, GA (49)

Home to colleges such as: Emory University, Georgia Institute of Technology, Georgia State University, Clark Atlanta University, Spelman College, Agnes Scott College, Morehouse College, and Oglethorpe University.

Tallahassee, FL (47)

Home to colleges such as: Florida A&M University, and Florida State University.

Columbia, SC (43)

Home to colleges such as: Allen University, Benedict College, Columbia International University, University of South Carolina, and Columbia College (SC).

Austin, TX (38)

Home to colleges such as: The University of Texas–Austin, Huston-Tillotson University, St. Edward’s University, and Concordia University Texas.

Chicago, IL (24)

Home to colleges such as: University of Illinois–Chicago, American Academy of Art, DePaul University, Columbia College Chicago, East-West University, Roosevelt University, National Louis University, School of the Art Institute of Chicago, Illinois Institute of Technology, and University of Chicago.

By leveraging Hubexo’s tools, investors can explore these markets in detail, understanding the specific dynamics that make them profitable.

Why Hubexo is the Right Partner for PBSA Investors

Hubexo provides investors and developers with geospatial data that goes beyond traditional market analysis. With mapping tools and insights into local demographics, competition, and market trends, you can make data-backed decisions for site selection, uncover untapped markets where PBSA is poised for growth, and optimize investment strategies to maximize ROI.

Ready to take the next step? Book a demo to start identifying high-ROI real estate markets now.