Student Accommodation Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Accommodation Type (Purpose-Built Student Accommodation (PBSA), University-Managed Accommodation, Private Rental Accommodation, Others), By Education Grade (Undergraduate Students, Postgraduate Students, Professional and Continuing Education Students), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.32 Billion
CAGR (2026-2031)	5.18%
Fastest Growing Segment	Postgraduate Students
Largest Market	North America
Market Size (2031)	USD 18.03 Billion

Market Overview

The Global Student Accommodation Market will grow from USD 13.32 Billion in 2025 to USD 18.03 Billion by 2031 at a 5.18% CAGR. Student accommodation comprises a specialized real estate asset class encompassing on-campus residence halls, off-campus private housing, and purpose-built student accommodation (PBSA) designed specifically to meet the academic and lifestyle needs of higher education students. The primary drivers sustaining the global market's expansion include the escalating rate of international student mobility and the burgeoning middle-class population in emerging economies, which fuels the demand for quality higher education abroad. Furthermore, there is a structural undersupply of university-owned beds in major academic hubs, compelling students to seek secure, private housing solutions that offer proximity to campus institutions.

However, the market faces a significant challenge in the form of high construction costs and elevated interest rates, which have slowed the delivery of new inventory and exacerbated the existing supply-demand imbalance. This scarcity of available beds continues to push rental rates upward as developers struggle to align project pipelines with rapid enrollment growth. According to the National Multifamily Housing Council, in 2025, net rental income for student housing properties grew by a median of 14.3% from 2022 to 2024. While this highlights financial resilience, the persistent inability to deliver sufficient new stock remains a critical hurdle impeding broader market expansion.

Key Market Drivers

The acute supply shortage of university-managed housing acts as a primary catalyst for the global student accommodation market, necessitating a reliance on private housing solutions. Educational institutions face significant challenges in expanding on-campus dormitory capacity to match the persistent demand, creating a structural imbalance that drives students toward purpose-built student accommodation (PBSA). This scarcity is particularly evident in major academic hubs where existing stock is insufficient to house the student population, resulting in historically high occupancy levels. According to Yardi Systems, October 2025, in the 'National Student Housing Report', the final occupancy rate for the fall 2025 academic year reached 95.1% across 200 major universities, marking one of the strongest performances in recent years due to these critical supply constraints.

Concurrently, increasing institutional investment in purpose-built student accommodation is reshaping the sector's trajectory, as capital gravitates toward this counter-cyclical asset class. Investors are increasingly drawn to the sector's stable income streams and resilience against broader economic volatility, prompting sustained transaction activity even in a high-interest-rate environment. For instance, according to Timberline Real Estate Ventures, October 2025, in an interview with 'Student Housing Business', the firm completed 13 acquisitions in the first seven months of 2025 alone, underscoring the continued appetite for high-quality student housing assets. This investor confidence is further underpinned by robust future demand indicators; according to Newmark, October 2025, approximately 20% of primary markets were already observing early leasing momentum for the 2026-2027 academic year, highlighting the sector's long-term operational stability.

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Key Market Challenges

The Global Student Accommodation Market is severely constrained by a challenging economic environment defined by high construction costs and elevated interest rates. This financial pressure acts as a formidable barrier to entry for developers, making the underwriting of new purpose-built student accommodation (PBSA) projects increasingly difficult. As financing becomes more expensive and material costs rise, many planned developments are rendered financially unfeasible, leading to widespread project pauses or cancellations. This disruption in the development pipeline directly hampers the market's ability to expand its physical capacity, creating a persistent supply deficit that fails to match the trajectory of student enrollment growth.

The impact of these headwinds is evident in recent industry performance metrics regarding development activity. According to the National Multifamily Housing Council, in December 2024, 78% of surveyed construction and development firms reported experiencing delays in permitting and construction activities. This statistic underscores the severity of the operational bottlenecks preventing the delivery of new inventory. Consequently, the market remains unable to scale up effectively, limiting the availability of beds in key academic hubs and restricting the sector's overall growth potential despite strong fundamental demand.

Key Market Trends

The Adoption of Sustainability and Green Building Standards (ESG) is rapidly becoming a defining characteristic of the sector, driven by the dual pressures of environmental responsibility and investor mandates. Operators are increasingly retrofitting existing assets and designing new developments with net-zero targets to minimize carbon footprints and appeal to eco-conscious student demographics. This commitment to decarbonization is evident in the operational strategies of major market players who are allocating significant capital towards energy efficiency measures. According to Unite Students, March 2025, in the 'Annual Report and Accounts 2024', the firm invested approximately £10.2 million in energy, carbon, and water reduction projects throughout the year, illustrating the tangible financial commitment to enhancing the environmental performance of their property portfolio.

The Shift Towards Purpose-Built Student Accommodation (PBSA) Dominance is fundamentally altering the market's physical composition, as professionalized housing models steadily capture market share from traditional private rentals. This trend is characterized by the delivery of high-density, amenity-rich assets that offer superior security and lifestyle management, positioning them as the preferred choice over fragmented Houses in Multiple Occupation (HMOs). The increasing penetration of this asset class highlights its growing role in meeting the specialized needs of modern students in competitive academic hubs. According to Amber Student, January 2025, in the 'UK Student Housing Annual Report (2024-25)', purpose-built student accommodation (PBSA) now constitutes 25.2% of the total student housing bed share, underscoring the segment's expanding footprint within the broader accommodation landscape.

Segmental Insights

Industry analysis identifies Postgraduate Students as the fastest-growing segment in the Global Student Accommodation Market. This expansion is primarily driven by rising international enrollment in advanced degree programs and a corresponding demand for specialized living arrangements. Unlike undergraduates, this demographic prioritizes privacy, quiet study environments, and proximity to research facilities to support intensive academic work. Furthermore, because universities frequently allocate on-campus housing to first-year students, a significant supply gap exists for mature learners. Consequently, private accommodation providers are increasingly developing tailored inventory to address the distinct lifestyle and academic necessities of this expanding cohort.

Regional Insights

North America maintains a dominant position in the global student accommodation market, primarily due to the high concentration of top-ranked universities in the United States and Canada. This extensive academic infrastructure attracts a substantial volume of international and domestic enrollments, creating consistent demand for housing. The market leadership is further supported by a mature Purpose-Built Student Accommodation sector, which actively addresses on-campus housing limitations often highlighted by data from the National Center for Education Statistics. Consequently, the availability of private investment and high occupancy rates establishes North America as the leading revenue-generating region.

Recent Developments

• In July 2024, University Living acquired a 51% stake in StudentTenant, a UK-based accommodation service provider, to strengthen its foothold in the region. This strategic move was designed to combine local market insights with global distribution capabilities, thereby optimizing services for both students and landlords. The collaboration aims to expand the availability of verified private housing options, particularly Houses of Multiple Occupancy (HMOs), across key university cities in the United Kingdom. Executives from University Living indicated that this partnership would drive operational efficiencies and deliver superior return on investment for property partners while simplifying the housing search process for international and domestic students.
• In May 2024, Greystar Real Estate Partners completed a strategic transaction through a public-private partnership with Provident Resources Group and the University of Washington. The collaboration involved the acquisition of two on-campus communities, Nordheim Court and Radford Court, supported by $183 million in tax-exempt bond financing. Under this arrangement, the properties are owned by the non-profit partner under a long-term ground lease, while Greystar’s Student Living team assumed management and operations. This partnership ensures the preservation of affordable housing options for students and faculty while facilitating planned capital improvements to enhance the living environment and infrastructure.
• In March 2024, Kinetic Software launched a new mobile application named KxEngage, designed to enhance the digital experience for student residents. This product launch provides student accommodation providers with a platform to foster vibrant communities and promote a sense of belonging among tenants. The application allows students to connect with peers, join interest groups, and access essential services such as maintenance reporting and facility booking through a single interface. By integrating these social and operational features, the company aims to streamline property management tasks while simultaneously improving student satisfaction and engagement levels across global accommodation networks.
• In February 2024, Unite Students entered into a joint venture framework agreement with Newcastle University to develop 2,000 new student beds. This collaboration aims to redevelop the Castle Leazes site, replacing existing facilities with high-quality, affordable accommodation tailored to modern student needs. The project, expected to be delivered between 2027 and 2028, addresses the growing shortage of student housing in the region while supporting the university's recruitment capabilities. The Chief Executive Officer of Unite Students highlighted that this partnership would allow the university to focus on providing a world-class educational experience while the company manages the purpose-built accommodation infrastructure.

Key Market Players

• 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

By Accommodation Type	By Education Grade	By Region
Purpose-Built Student Accommodation (PBSA) University-Managed Accommodation Private Rental Accommodation Others	Undergraduate Students Postgraduate Students Professional and Continuing Education Students	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Student Accommodation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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 and Continuing Education Students

• Student Accommodation Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE