An already struggling student housing submarket could be exasperated if universities don't reopen their campuses for the 2020-21 school year, according to Trepp.
To be sure, the student housing sector was struggling well before COVID-19, Trepp wrote in a new report.
Compared to other multifamily sectors, student housing was always deemed "riskier" because of its short-term leases, customary high turnover and significant upkeep, Trepp said. Student housing property loan delinquency rates are higher on average than other multifamily units. Notably, student housing properties' delinquency rates have increased from April 2016′s 4.13% to 10.77% in April 2020, which wasn't a result of colleges shutting down in-person classes in mid-March and April, Trepp noted.
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Victoria Hudgins
I am a reporter for Legaltech News where I cover data privacy, cybersecurity and technology's impact on the business and practice of law.
