Oct 3, 2019
GottaRent Blog
Why Invest In Student Housing?
Oct 3, 2019
Have you ever been to a college or university town? From late August till early May, they're teeming with 17- to 25-year-olds who call these places their home away from home during the school year. Many of these young students either can't or don't want to live on campus in residence. Upper-year students are often looking for student housing near campus that's clean and safe. There's always a demand for student rentals.
If you're looking for an investment property, student rentals near campus have traditionally had low vacancy rates. There's a new demand, it seems, for more upscale student housing. Many young tenants place a high value on comfort and security, so they are looking at condo buildings with rentals and purpose-built stacked townhouses.
While some view renting to students as a risk, when it comes to luxury student apartments in Toronto, the rent is often paid by parents who are investing in their child's future.
More stable than stocks
When you want to invest your money into something, real estate is a good place to start. While the stock market can be volatile, real estate is often steady, making it a secure place to put your money. Student housing near campus has historically had low vacancy, but that is no longer guaranteed: CMHC's 2025 Rental Market Report found vacancy rates rising in many large cities, and named lower demand from international students as one reason (current figures are on cmhc-schl.gc.ca). Pick a location that works for domestic students too, and budget for some vacancy over the summer. The key is to buy a property near the school. These designated areas are often full of off-campus housing options, and more are being built as demand grows and older properties are being redeveloped.
Student housing has drawn institutional money in some markets, including pension funds and specialized real estate investment trusts, which says something about how the asset class is viewed.
International students
For years, international students and their families were the fastest-growing source of demand for upscale student rentals. That changed in 2024, when the federal government capped the number of new study permits; the cap was lowered again for 2025 and 2026, and the number of study permit holders in Canada fell from more than one million in early 2024 to roughly 725,000 by late 2025 (details on canada.ca). International students still rent near campus and often prefer furnished, secure units, but investors should not count on that segment growing every year the way it once did.
Real estate investment trusts (REITs)
Some student housing is owned and operated by REITs. Since student rentals are a niche market, there are specialized REITs for this. The student rental market can be a different beast from traditional real estate and rentals, so it's not surprising that it's a specialized investment.
When thinking about making a big real estate investment, start your search near major post-secondary institutions!
For students looking for student housing, check out Gottarent.com to find your off-campus home. For property owners investing in student housing, list your available units to get matched up with eager tenants.
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