Harrison Street navigates a fractured student housing market

While national metrics show a slight improvement over last year, the sector is currently defined by sharp regional disparities. Data from Yardi indicates that while 117 of the 200 surveyed markets are performing at or above year-earlier levels, a glut of new supply in the largest university hubs is actively suppressing overall growth. This concentration of beds in specific areas creates a drag that distorts the broader picture.

Harrison Street, which oversees a portfolio of 238,000 beds across North America and Europe, remains bullish on the asset class but increasingly selective. Mike Gordon, the firm’s global chief investment officer for real estate, emphasizes that the era of blanket investment is over. Funding shifts, enrollment volatility, and evolving student preferences have made deep market specialization a requirement for success. With a total of $24 billion deployed since 2005, the firm is betting that the current complexity favors seasoned managers who can distinguish between thriving collegiate hubs and those facing structural headwinds.