“We’re trending toward what you see in other markets,” Wadlund said. “Generation X and Generation Y are into experiences, not the responsibility of a house.”
He said many baby boomers are also selling houses in the foothills or Green Valley and looking to rent downtown while other renters are waiting out the escalating prices of new homes and competition for existing homes.
“It’s a combination of renters by choice and renters by necessity,” Wadlund said. “And, perhaps as more properties that are farther from campus convert, we’ll see a need for more student housing near campus.”
More demand for student housing?
The university welcomed its largest incoming class in history this year with more than 8,700 new students and a total enrollment at more than 47,000.
That is keeping investors interested in the student housing market, said Mike Chapman, a student-housing specialist with NAI Horizon.
Construction on the 14-story student housing tower at 1020 N. Tyndall in 2012, dwarfed the existing structures that sit along Park Avenue just south of Speedway.
“Developers are still looking for sites and are optimistic about this market,” he said. “As long as there is money, a positive feasibility study and a piece of land, builders are going to build these projects.”
That financing is available at low interest rates and is also driving that market.
Read More:How popular student housing towers are changing Tucson’s apartment market | Subscriber
2021-09-26 02:00:00
