Student Housing Construction Costs Brief Summer 2024

Industry-wide, major indices are trending lower, and we are seeing modest compression of contractor margins as subcontractors seek to fill their backlog. The composite pricing on materials is around 4.5% annually, while labor increases are in the 4-5% range. We anticipate the overall escalation rate for the next 12 months to be in the 4-5% range.

Student housing has been and will continue to be a recession-resilient market. Positive aspects such as good enrollment numbers and occupancy growth, paired with rent increases, are contributing to the market’s optimistic outlook.

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