New Jersey is a net exporter of college students, but its in-state institutions—led by Rutgers and the rapidly growing Rowan University—are seeing record enrollment. This has created a severe shortage of on-campus beds, opening the door for private developers.
The Rise of PBSA (Purpose-Built Student Accommodation)
PBSA is a specific asset class designed for students. It features:
- Bed-Bath Parity: Every bedroom has its own private bathroom.
- Per-Bed Leases: Students are only responsible for their own rent, not their roommates'. (This requires parental guarantees).
- Amenities: Study lounges, gyms, and package lockers are standard.
- Furnished Units: Turnkey living.
The "Town-Gown" Conflict
Developing student housing is politically tricky. Local residents fear parties, noise, and parking issues. Successful developers must work closely with both the university and the municipality to mitigate these concerns. Strict management plans and shuttle services are often required conditions of approval.
The Rowan University Case Study
Glassboro has been transformed by the growth of Rowan University. The partnership between the university, the borough, and private developers has created a vibrant downtown district (Rowan Boulevard) that serves as a model for other college towns in the state.
Rutgers New Brunswick
The market around Rutgers is massive but fragmented. The challenge here is assembling land in dense, established neighborhoods. Vertical development is the only option, but it faces stiff zoning resistance.
Conclusion
Student housing offers a recession-resistant income stream (parents pay the rent), but it requires specialized management and a deep understanding of the academic calendar leasing cycle.