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Economic Viewpoint

Opportunities and Challenges of Investing in Purpose-Built Student Housing in Canada

September 3, 2024
Randall Bartlett, Senior Director of Canadian Economics • Kari Norman, Economist
  • Student housing in Canada has been woefully undersupplied for far too long, contributing to skyrocketing rents across the country. More purpose-built student accommodation (PBSA) needs to be made available to improve affordability for students and all Canadians.
  • PBSA has proven itself an attractive investment globally for institutional investors with long-term stable capital, including Canadian pension funds, due to its predictable revenue stream.
  • Canada’s nascent PBSA market is ripe for investment. But barriers to investment have led to a lack of market information, low provision rate of off-campus beds, significant market fragmentation, modest deal sizes and few portfolio investment opportunities. Governments need to reduce these barriers to attract the needed private capital to help improve affordability in Canadian campuses and communities.
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.