Student Accommodation Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Student Accommodation Market is projected to expand from USD 13.32 Billion in 2025 to USD 18.03 Billion by 2031, achieving a CAGR of 5.18%. This specialized real estate sector encompasses on-campus residence halls, off-campus private housing, and purpose-built student accommodation (PBSA) tailored to the academic and lifestyle requirements of higher education students. Key factors propelling this growth include rising international student mobility and an expanding middle class in emerging economies, which stimulate demand for quality overseas education. Additionally, a chronic shortage of university-owned dormitory beds in major academic centers forces students to rely on secure, private housing options located near campus institutions.

Despite these growth drivers, the market encounters substantial obstacles due to elevated construction costs and high interest rates, which have slowed the delivery of new inventory and worsened the supply-demand gap. This lack of available beds drives rental rates higher as developers struggle to match project output with surging enrollment numbers. For example, the National Multifamily Housing Council reported in 2025 that net rental income for student housing properties increased by a median of 14.3% between 2022 and 2024. Although this indicates financial robustness, the persistent failure to supply adequate new stock continues to be a significant barrier to broader market expansion.

Market Drivers

A critical driver for the global student accommodation market is the severe shortage of university-managed housing, which necessitates a shift toward private housing alternatives. Educational institutions struggle to expand on-campus capacity sufficiently to meet ongoing demand, resulting in a structural imbalance that directs students toward purpose-built student accommodation (PBSA). This deficit is especially pronounced in major academic centers, leading to historically high occupancy rates due to insufficient existing stock. According to the 'National Student Housing Report' by Yardi Systems in October 2025, the final occupancy rate for the fall 2025 academic year hit 95.1% across 200 major universities, reflecting strong market performance driven by these supply constraints.

Simultaneously, rising institutional investment in PBSA is transforming the sector, with capital flowing into this counter-cyclical asset class. Investors are attracted to the sector's resilience against economic volatility and its stable income potential, ensuring continued transaction activity despite a high-interest-rate environment. For example, Timberline Real Estate Ventures noted in an October 2025 interview with 'Student Housing Business' that the firm finalized 13 acquisitions within the first seven months of the year, demonstrating sustained demand for quality student housing. This confidence is supported by strong future indicators; Newmark reported in October 2025 that roughly 20% of primary markets were already experiencing early leasing momentum for the 2026-2027 academic year, underscoring long-term operational stability.

Market Challenges

The Global Student Accommodation Market faces severe constraints due to a difficult economic climate characterized by high construction costs and elevated interest rates. These financial pressures create significant barriers to entry for developers, complicating the underwriting process for new purpose-built student accommodation (PBSA) projects. With financing becoming costlier and material prices rising, numerous planned developments have become financially unviable, resulting in widespread project suspensions or cancellations. This disruption to the development pipeline directly impedes the market's capacity to expand physically, leading to a lingering supply deficit that fails to keep pace with student enrollment growth.

The consequences of these economic headwinds are clearly visible in recent industry performance metrics related to development activity. In December 2024, the National Multifamily Housing Council reported that 78% of surveyed construction and development firms experienced delays in permitting and construction processes. This statistic highlights the magnitude of operational bottlenecks that hinder the delivery of new inventory. As a result, the market remains unable to scale effectively, thereby limiting bed availability in key academic hubs and restricting overall sector growth despite strong fundamental demand.

Market Trends

The adoption of Sustainability and Green Building Standards (ESG) is increasingly defining the sector, motivated by environmental responsibilities and investor requirements. Operators are actively retrofitting existing properties and designing new developments with net-zero goals to reduce carbon footprints and attract eco-conscious students. This dedication to decarbonization is reflected in the strategies of major industry players who are directing substantial capital toward energy efficiency improvements. For instance, Unite Students revealed in their 'Annual Report and Accounts 2024', published in March 2025, that the firm invested approximately £10.2 million in energy, carbon, and water reduction initiatives during the year, demonstrating a tangible financial commitment to improving environmental performance.

Concurrently, the shift toward Purpose-Built Student Accommodation (PBSA) dominance is fundamentally reshaping the market's structure, as professionalized housing models gain market share over traditional private rentals. This trend involves the delivery of high-density, amenity-rich assets that provide superior security and lifestyle management, making them preferred over fragmented Houses in Multiple Occupation (HMOs). The rising penetration of this asset class emphasizes its critical role in satisfying the specific needs of modern students in competitive academic hubs. According to Amber Student's 'UK Student Housing Annual Report (2024-25)' from January 2025, PBSA now accounts for 25.2% of the total student housing bed share, highlighting the segment's growing influence within the wider accommodation landscape.

Key Players Profiled in the Student Accommodation Market

• American Campus Communities LLC
• GSA International Limited
• Campus Living Villages Pty Ltd.
• TSH Management B.V.
• UNITE Group PLC
• Harrison Street Real Estate Capital, LLC
• Greystar Worldwide, LLC
• Casita
• Kohlberg Kravis Roberts & Co. L.P.
• Mapletree Investments Pte Ltd.

Report Scope

In this report, the Global Student Accommodation Market has been segmented into the following categories:

Student Accommodation Market, by Accommodation Type:

• Purpose-Built Student Accommodation (PBSA)
• University-Managed Accommodation
• Private Rental Accommodation
• Others

Student Accommodation Market, by Education Grade:

• Undergraduate Students
• Postgraduate Students
• Professional
• Continuing Education Students

Student Accommodation Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Student Accommodation Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.