As the investment landscape continues to evolve, so do ELIM’s investment strategies and selection of rental housing asset classes. Investors have been concerned about an economic slowdown and a challenging landscape in 2025. However, as recent economic data suggests, sentiment has shifted toward expectations of a stable economy, with long-term yields beginning to exceed short-term yields. This market volatility signals an opportunity for investors to shift their focus toward safer investment options, such as real estate, which offers both stable income and appreciation potential.
Expanding Our Investment Footprint with Student Housing
“With limited supply in many rental markets and consistently strong demand for student housing in the post-COVID years, diversifying and adding investments in this sector helps reduce overall risk and balance our portfolio,” said Harvey Li, CEO of ELIM. “The student housing market has shown remarkable resilience and growth, primarily driven by robust enrollment rates—even during economic downturns—increasing numbers of international students, and the growing demand for purpose-built student housing with modern amenities such as study areas, high-speed internet, and communal spaces.”
Diversifying Rental Housing Investments
Expanding into student housing allows investors to further diversify and balance rental housing portfolios, which may include traditional multifamily units, build-to-rent communities, and student housing. Each type of rental property has unique market dynamics, and student housing, with its stable demand, adds an extra layer of security and growth potential.
Two key trends support this investment strategy: rising enrollment and supply-demand imbalance. Since 2008, public four-year universities have experienced an aggregate enrollment growth rate of 27%. Additionally, in 2023, there were 1.5 million active F-1 and M-1 visa students in the U.S.—a more than 10% increase from the previous year—indicating that international student enrollment is rebounding to pre-pandemic levels.
“There is a supply-demand imbalance due to high interest rates and rising construction costs. The pace of student housing development remains low, and in some markets, supply cannot keep up with enrollment growth. We are actively seeking investment opportunities in locations where these imbalances and strong enrollment trends are evident,” said Stanley Kung, Managing Director of ELIM.
Case Study: Recapitalization of a Student Housing Asset
In late 2024, ELIM made its first foray into the student housing market by investing in a recapitalized joint venture portfolio owned by one of the top student housing managers in collaboration with other global asset management firms. This portfolio comprises 853 units and 22,622 beds across four assets, achieving an impressive 99.05% occupancy rate for the 2024/25 academic year. With a projected cash yield of 7-8% and an anticipated hold period of 4-6 years, the investment aligns with ELIM’s long-term strategy.
Key factors in evaluating this investment included:
- Local market expertise and operational experience
- Occupancy rates and rental growth trends
- Renovated units with value-add potential
- Discounted pricing compared to new construction
- Historic enrollment growth
- Major university investments driving future demand
According to the latest report from College House, the national average rent per bed for student housing in December 2024 experienced a 4.6% year-over-year increase. This growth highlights the ongoing strength and stability of the student housing market despite broader economic fluctuations. ELIM’s investments in student housing have not only delivered strong returns for our investor group but have also positioned us for further growth and diversification in the rental housing market—capitalizing on stable demand, high occupancy rates, and foreseeable rent appreciation.
