The student housing market at Miami Dade College has significant untapped potential. With 20,188 full-time undergraduate students and over 48,000 students in total, the need for quality housing that meets student needs is clear and pressing.
Current Student Housing Landscape
Miami Dade College does not currently offer on-campus dormitories, which leaves the majority of students dependent on off-campus housing. The school’s demographics are heavily local, with 99.2% of students coming from within Florida, 0.8% from out of state, and none from international backgrounds. This setup presents a unique opportunity to cater to commuter students who may be looking for housing closer to campus for added convenience and an enriched college experience.
Off-Campus Housing Trends
The local rental market around Miami Dade College is dominated by multi-family housing. Within a 10-minute commute, the average rent is $2,185 per bed, while housing 10-20 minutes away averages $1,718 per bed. Occupancy rates remain strong, with the total market averaging 95.9%, underscoring consistent demand for housing in the area.
Additionally, rents in the market have grown by 4.0% over the past year, signaling a healthy investment environment. However, the lack of purpose-built student housing (PBSA) highlights a clear gap in the market, offering an opportunity for developers to step in.
Development Opportunities
The absence of PBSA near Miami Dade College, coupled with a growing student population that is projected to reach nearly 23,000 full-time enrollees by 2028, makes the market ripe for new development. Features such as flexible lease options, fully furnished units, and close proximity to campus could directly address the needs of the student population.
Several factors make this market particularly attractive for development:
Enrollment Growth: Full-time enrollment is expected to grow by 3.5% annually through 2028, ensuring a steady demand for housing.
High Retention Rates: With a 67% retention rate, Miami Dade College maintains a stable population of returning students who would benefit from accessible and reliable housing options.
Proximity to Other Universities: The surrounding area is also home to other institutions like Florida International University and Barry University, creating opportunities to target a broader pool of student renters.
Competing Rental Market
Nearby universities like Barry University and the University of Miami already influence the local rental market. For instance, Barry University’s average rent per bed is $1,941—substantially higher than the $1,718-$2,185 range near Miami Dade College. This opens the door for competitive pricing strategies within PBSA, offering affordable yet modern housing options to appeal to students from various economic backgrounds.
Construction Environment
The broader Miami housing market has seen strong growth, with over 4,000 beds currently under construction. However, most of these projects are traditional multi-family developments rather than purpose-built student housing. This represents an opportunity for differentiation, as developers who focus on student-specific needs can stand out from the competition.
Conclusion
The student housing market at Miami Dade College is positioned for growth, offering developers a chance to fill a clear gap in the market. High demand, a lack of existing student housing options, and a steadily increasing student population make this an exciting opportunity. By focusing on affordability, proximity, and community-driven amenities, new developments could transform the housing experience for Miami Dade College students and create significant returns for investors.
December 26, 2024 by MMCG Invest, LLC
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