Walker & Dunlop Releases 2020 Student Housing Year-End Report

Rhea-AI Summary

Walker & Dunlop's Investment Sales team has released its 2020 Student Housing Year-End Report, which aggregates key data from the student housing market. The report highlights a decline in transaction volume but notes resilient rent collections and active transactions. Key findings include rising land and materials costs, ongoing cap rate compression, and a shift in buyers from foreign to domestic. Despite GSE caution, a recovery in debt markets is expected. The report emphasizes strong investment opportunities within the construction pipeline across 50 major markets.

Positive

• Transaction activity remains resilient despite a volume decline.
• The shift from foreign to domestic buyers indicates strengthened local interest.
• The commercial real estate market, particularly multifamily assets, shows signs of recovery.

Negative

• Transaction volume in the student housing market has decreased.
• Ongoing increases in land and materials costs could pressure profit margins.

BETHESDA, Md., April 26, 2021 /PRNewswire/ -- Walker & Dunlop, Inc.'s Investment Sales team (WDIS) published its Student Housing Year-End Report. Providing the most comprehensive aggregation of student housing data in the industry, the annual report includes a look back at transaction highlights from a challenging 2020, along with insights into trends for a promising year ahead.

The report features an in-depth analysis of:

• Student Housing Transactions – Despite a decline in volume, returning students and resilient rent collections keep transactions moving.
• Pricing Metrics – Increasing land and materials costs continue to push pricing metrics to new heights.
• Cap Rates – With a flight to quality, cap rate compression continues without interference.
• Buyers & Sellers – Developers are selling the most, while buyers have shifted from foreign to domestic.
• Debt Markets – The GSEs are cautious, but a comeback is imminent.
• Supply & Demand – A deep dive into the construction pipeline and enrollment data of 50 Power Five markets uncovers some very compelling investment opportunities.

Download the full report here.

In February 2021, Walker & Dunlop acquired FourPoint Investment Sales Partners, a boutique brokerage firm specializing in student housing investment sales. In partnership with Walker & Dunlop's #1 ranked Fannie Mae student housing lending team, the Walker & Dunlop Student Housing Team offers a full-service platform and the expertise to meet all student housing needs.

As the #1 provider of capital to the multifamily market, Walker & Dunlop sees many reasons to remain optimistic about the health of the commercial real estate market, with a number of trends indicating that the multifamily asset class – including student housing – will remain strong. As we track recovery from the pandemic, we are keeping a close eye on economic indicators and industry leaders impacting the multifamily industry.

About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine's Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop's 1,000+ professionals in 38 offices across the nation have an unyielding commitment to client satisfaction.

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SOURCE Walker & Dunlop, Inc.

FAQ

What did Walker & Dunlop report about the student housing market in 2020?

Walker & Dunlop reported a decline in transaction volume for student housing, but resilient rent collections and ongoing transactions remained evident.

What are the key findings in Walker & Dunlop's 2020 Student Housing Year-End Report?

The report highlights increasing land and material costs, cap rate compression, and a shift in buyer demographics, along with anticipated recovery in the debt markets.

How does the 2020 report impact Walker & Dunlop's outlook for the multifamily market (WD)?

The report suggests optimism about the multifamily market's health, indicating continued strength in student housing as part of the recovery from the pandemic.

What changes in buyer behavior were noted in the report from Walker & Dunlop (WD)?

The report noted a significant shift from foreign buyers to domestic buyers in the student housing sector.

What challenges does the student housing market face according to Walker & Dunlop's report?

Challenges include a decrease in transaction volume and rising costs for land and materials, putting pressure on the market.