An already struggling studenthousing submarket could be exasperated if universities don't reopentheir campuses for the 2020-21 school year, according toTrepp.
To be sure, the student housingsector was struggling well before COVID-19, Trepp wrote in a newreport.
Compared to other multifamilysectors, student housing was always deemed "riskier" because of itsshort-term leases, customary high turnover and significant upkeep,Trepp said. Studenthousing property loan delinquency rates are higher on average thanother multifamily units. Notably, student housing properties'delinquency rates have increased from April 2016′s 4.13% to 10.77%in April 2020, which wasn't a result of colleges shutting downin-person classes in mid-March and April, Trepp noted.
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Victoria Hudgins
I am a reporter for Legaltech News where I cover data privacy, cybersecurity and technology's impact on the business and practice of law.
