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An increasing number of industry experts are anticipating a recession in the short-run, the next 12 to 18 months. As a result, capital is increasingly looking for more recession-resistant asset classes, like student housing. Last year had the highest volume of student housing deals in the history of the industry at $10.8 billion. This year, investors have increased their asset allocation for student housing.

“Student Housing is widely known as a recession-resistant asset class,” Frederick W. Pierce, IV, president and CEO of Pierce Education Properties, tells GlobeSt.com. “As the prevailing wisdom believes that the U.S. is either already in a recession or will be by the end of 2019, savvy investors are preparing for this likelihood by altering their asset allocation within real estate to direct a greater portion of their investment portfolio to the niche sectors of real estate that are not highly correlated to the economy.  That means more investment in student and senior housing, medical office, health care real estate, self-storage.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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