Introduction

The Canadian student housing market presents a compelling opportunity for homeowners. With post-secondary enrollment consistently increasing and a substantial gap in dedicated student housing, property owners are positioned to meet this need while reaping the benefits.

Homeowners have the chance to tap into a market that shows no signs of slowing down. Renting to students offers advantages, including reliable demand, potential for higher rental income, and a vital role in supporting educational pursuits.

Market Overview

The demand for student housing in Canada is intensifying, driven by several factors highlighted by recent data:

• Enrollment Growth: International student numbers have skyrocketed, with an average annual increase of 11% since 2010 (Cushman & Wakefield, 2023).

• Urban Demand: Cities with prominent universities, such as Montreal, are seeing higher growth rates, with demands for student housing growing exponentially in these urban centers (Cushman & Wakefield, 2023). Vacancy rates are low at less than 2% showing that there is a high demand for student housing.

• Accommodation Shortage: The current supply of student housing is unable to keep pace with the growing demand, creating an underserved market ripe for investment (Cushman & Wakefield, 2023).

• National Averages: Overall, Canadian post-secondary institutions have seen a 2% annual increase in enrollment over the last five years, further straining existing housing resources (Statistics Canada, 2021).

  
  

Homeowners situated near educational institutions can seize this opportunity to provide valuable housing solutions that benefit both students and their own investment portfolios.

Student Preferences

Students housing preferences have evolved toward accommodations that support their academic and personal needs:

•  Amenities Matter: Students prioritize properties that offer high-speed internet, with a survey indicating that over 85% of students rate high-speed internet as an essential amenity for their living spaces (Elev Homes, 2023).

• Lease Alignment: Aligning lease terms with academic calendars can optimize rental periods, with the highest demand typically occurring before the fall semester. 

• Affordability Focus: Despite the desire for amenities, affordability remains a key concern for students, with rent pricing playing a critical role in housing decisions. 60% of students consider affordability a top factor when selecting housing, making competitive pricing crucial (Canadian Federation of Students, 2018).

  
  

Landlords who respond to these trends by providing these sought-after amenities can position their properties favorably in the student rental market. Understanding and catering to these preferences can ensure that rental properties remain competitive and desirable in the eyes of the student population.

Technological Advancements to make Renting easy

The integration of technology in property management has transformed the student rental experience:

• Gen Z Preferences: With Gen Z being the largest generation and providing the most intense demand for rentals, their tech savviness highlights the need for a strong digital presence in property listings and management.

• Marketing Effectiveness: Utilizing online platforms for listing properties can significantly expand a landlord’s reach, ensuring their rental offerings are seen by a broad audience of potential student tenants. Properties listed on digital platforms have seen a 25% increase in visibility among student renters (Real Estate Digital Marketing Trends, 2021).

  
  

These statistics underscore the importance of leveraging technology to attract and retain student tenants effectively.

Follow Renting Regulations

Landlords must stay updated on legal and regulatory considerations to rent effectively to students: 

• Rental Regulations: Landlords must be aware of the regulations governing rent increases, security deposits, and lease termination, which vary by province and territory. 

• Tenant Rights: Understanding and respecting tenant rights, including privacy, repair, and maintenance obligations, is critical for maintaining a good landlord-tenant relationship. 

• Safety Standards: Compliance with safety standards, such as fire codes and building safety regulations, is non-negotiable and essential for legal operation as a landlord. 

  
  

Being well-informed about these regulations is essential for homeowners to ensure they are operating within the law and providing a fair, safe living environment for their tenants.

What do Development Trends show us?

Investment in student housing is more than just business; it's a strategic move that reflects the importance of supporting academic communities. With growth in student housing demand outpacing growth in supply of housing:

• PBSA Growth: Purpose-Built Student Accommodations have seen a 20% increase in development projects over the past five years, demonstrating a significant market shift (Cushman & Wakefield, 2023).

• Future Projections: It is estimated that by 2025, the PBSA sector will have doubled in size compared to 2015, indicating a strong trajectory for growth (Global PBSA Report, 2021).

  
  

These trends underscore the growing recognition of student housing as a crucial component of the higher education infrastructure in Canada.

Opportunity for Homeowners to be Landlords

Renting to students offers unique advantages for homeowners:

• Consistent Demand: University enrolment rates are less impacted by economic fluctuations, providing a more reliable tenant base. They also report a yearly accommodation shortfall of up to 6,000 beds, assuring landlords of a steady demand (National Union of Students, 2021).

• Regular Income: Aligning lease terms with the academic year can lead to consistent rental income, especially with the opportunity for competitive rent during peak demand periods. Landlords who rent to students can expect, on average, a 3% higher rental yield compared to the general market (Canadian Real Estate Association, 2021).

• Long-term Tenants: Many students seek housing for the duration of their academic programs, offering the potential for multi-year tenancies. 

• Community Building: Listing properties on platforms that are frequented by students, such as university housing sites, can help build a sense of community and connect homeowners with their target audience, while contributing to the local economy. 

• Community Contribution: Providing student accommodations contributes significantly to the local economy, with every student renter adding an estimated $2,000 per academic year to the local spending (Economic Impact of Student Housing, 2019).

  
  

So why should you rent to students?

The current landscape of student housing in Canada is a reflection of growing demand that provides opportunities for discerning landlords. The consistent increase in university enrolments has created a reliable tenant base, seeking affordable amenities that homeowners can easily provide. By adapting to these evolving preferences and the legal framework, property owners can secure a profitable niche in this growing market. Becoming a landlord in the student housing market is not just a financial decision; it's a partnership in the educational ecosystem.

By listing your property on student-focused platforms, you gain access to a consistent rental market with several benefits:

• Financial Prospects: With potential for consistent rental yields and long-term tenancies, student housing emerges as a sound financial venture for homeowners.

• Social Impact: Beyond revenue, landlords contribute to the academic success of students, providing the foundation for their educational journey.

• Market Potential: The forward momentum of the student housing market indicates a sustained demand, making it a wise choice for investment and development.

  
  

Seize the moment and position your property as a prime choice for student accommodation. List your property on Elev today and step into a community that's not just filling vacancies but is also fueling futures. Join us in reshaping the student housing experience in Canada — one property at a time.