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January 9, 2025

Trends Shaping U.S. Student Housing in 2025

The landscape of higher education continues to evolve as American families reassess the value of a college education. Similarly, the world of student housing is undergoing significant transformation as we approach 2025.

Advancements in artificial intelligence and other emerging technologies are beginning to impact the student housing experience. Meanwhile, architectural designs are increasingly focused on addressing mental health needs, while the scale of many student housing communities is expanding. Developers are pursuing larger, more cost-effective housing solutions to meet growing demand. Below are some of the key trends expected to shape U.S. student housing in the coming year.

Sustainability on the Rise

Students are becoming more vocal in their demand for environmentally conscious housing options. From solar panels to energy-efficient building designs, sustainability is increasingly a priority in student housing, driven by both student demand and broader environmental concerns. College House, an organization tracking industry data, reports that students are particularly attracted to properties that prioritize environmental, social, and governance (ESG) principles. As more developers and investors embrace these values, socially conscious students and profit-driven institutional investors alike will likely find these green-focused initiatives appealing in 2025.

Growing Bed Counts

Student housing developments are becoming larger in scale. According to Zachary Westover, Associate Director of Sales and Marketing at Up Campus Living, more and more student housing communities are surpassing 1,000 beds. This trend, expected to continue in 2025 and beyond, reflects developers’ pursuit of economies of scale and the increasing demand for high-capacity housing near major universities.

Fostering Community and Togetherness

Mental health concerns have moved to the forefront of student housing design since the pandemic. With students relying heavily on mobile devices for communication and living in apartment-style units that provide separate spaces for studying, eating, and sleeping, isolation has become a growing issue. As a result, housing designs are evolving to encourage social interaction and community engagement. One example is Thrive Hall, a design concept by KTGY, a California-based firm. It reduces private living space and reallocates that square footage to shared common areas. Smaller groups of units are clustered around a central lounge area, designed to encourage students to leave their rooms and connect with others, fostering better mental and physical health.

In response to rising demand for desirable accommodations, many students are securing leases months ahead of the academic year. Properties that continue to offer good value and top-tier management are more likely to receive lease renewals, as students increasingly prioritize stability and convenience over the hassle of relocating.

A Return to Affordable Housing

In recent years, luxury amenities such as boxing gyms, maker spaces, and spas have become commonplace in student housing developments. However, recent reports show that a growing number of students are coming from financially strained families. According to Research.com and the Pew Research Center, both undergraduate and graduate students are increasingly struggling with financial challenges. As a result, many students are seeking more affordable, practical housing options with functional amenities. A survey by Studenthousingbusiness.com found that essentials like Wi-Fi, laundry facilities, and parking are more important to students than luxury features such as pools and fitness centers.

Artificial Intelligence’s Growing Role

AI is set to revolutionize student housing, much like it is transforming multifamily rental communities. In 2025, AI technology will automate repetitive tasks traditionally handled by property staff, allowing for more personalized services for residents. Additionally, social media platforms will play a key role in improving communication between students and property management, enabling smoother and more efficient interactions.

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