Student housing has been no stranger to the impacts of the pandemic. Like other commercial real estate sectors, student housing owners were blindsided by the onset of the coronavirus outbreak and economic shutdown in March 2020, which caused widespread school and business closures and forced many students to return home early. For operators, the damage was compounded when universities had inconsistent reopening policies in the fall. While the market will likely continue to recover through the spring semester, there is a bright light ahead: fall semester 2021.

Student housing owners are anticipating renewed confidence in the second half of 2021, which will bring stronger demand and higher occupancy rates, as well as modest rent growth.

"We expect to see a potential spike in fall 2021 enrollments, as both the 2021 high school graduating class, as well as those in the 2020 class who did not attend college this year, both apply for the 2021-2022 school year," Frederick W. Pierce, IV, president and CEO of Pierce Education Properties, says. "That will put pressure on residence halls and will push more housing demand off-campus next year, as well. We also project a resurgence in international enrollments for the academic year 2021-2022."