Higher education continues to be buffeted by changes in the way American families view college educations. Not dissimilar winds of change are blowing through the world of student housing as we toe the doorstep of 2025.
Artificial intelligence and related technologies are impacting the student housing experience. Architectural approaches are being driven by the need to address mental health issues. The sheer size of many student housing communities is growing, as developers seek greater economies of scale. Read further for a few of the trends likely to shape U.S. student housing across the coming 12 months.
Sustainability strong
Students are among stakeholders driving the demand for environmentally responsible housing. From the incorporation of solar panels to the use of energy-efficient layouts, student housing is increasingly embracing environmental, social and governance (ESG) principles, reports College House, an organization that tracks granular and relevant data at industry, market and property levels. What’s proven appealing to socially conscious students should loom equally attractive to returns-seeking institutional investors in 2025.
Bed count threshold
Student housing developments are increasing in size, according to Zachary Westover, associate director of sales and marketing at Up Campus Living, a developer, investor and manager of off-campus student housing and campus-area real estate. A growing number of student housing developments are coming in at more than 1,000 beds.
Expected to continue in 2025 and years beyond, this trend reflects both an emphasis on economies of scale among developers and on an enhanced appetite for high-capacity student housing proximate to major universities.
Togetherness key
Since Covid, the issue of mental health has risen to the forefront of student housing discussions. Mobile devices enable students to communicate with one another without interacting in person. And an increased emphasis on apartment-like student housing has enabled students to study, dine and sleep while ensconced in their units. Resultant isolation has exacerbated the mental health situation among college students. Watch for housing design to evolve in ways that bring students together as opposed to enabling them to stay apart. A design concept of Irvine, Calif.-based design firm KTGY, Thrive Hall, trims private living area square footage and reallocates space to common areas. Smaller groups of units are positioned around a shared lounge area accommodating about 30 students per pod. The design is intended to spur students to leave their rooms and connect with their fellow students, supporting physical and mental health.
Earlier signings
Students intent on capturing the best accommodations are increasingly gaining a head start on their housing for next year by inking leases months ahead of the next academic year, Westover says. Those properties that continue to deliver a robust price-to-value ratio and top-shelf management are more often rewarded with lease renewals, with students placing stability and ease ahead of relocation on their lists of priorities.
Affordable fundamentals
Recent years have seen student housing developers compete to shoehorn as many luxury amenities as possible into residential communities, from boxing gyms to makers spaces and luxury spas. It’s as if students attend college to luxuriate in swimming pools and play beach volleyball, instead of hitting the books. But Research.com, citing a Pew Research Center study, reports undergrad college students are increasingly products of families facing financial challenges. Moreover, both undergrads and graduate students tend to be cash-strapped. Upshot: There may be a tide of students seeking to locate sensible, affordable housing. They will also prioritize more functional amenities, reports a survey by Studenthousingbusiness.com. It shows Wi-Fi, laundry facilities, and parking are greater student priorities than pools, fitness centers and spas.
AI’s influence
As it is doing in multifamily rental communities, AI will revolutionize student housing in 2025 and beyond. The technology will take many repetitive tasks out of the hands of property staff and management, freeing up their time for more personalized resident services. Also on the tech front, social media will be instrumental in enabling more efficient communications between students and property staff, Westover says.
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