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Student off-campus housing developers overbuild

Falling rents benefit students

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Students heading back to college are in for a nice surprise. Landlords are cutting rents because of an oversupply of student housing, the Wall Street Journal reports. Per the WSJ:

Developers appear to have overshot the mark in numerous markets. Some of them failed to take into account other construction that was planned, say experts. Others misjudged future enrollments or the willingness of students to pay up for off-campus living at the time when many families are still pressed in the aftermath of the economic downturn.

With vacancy rates rising due to the new supply, new and existing complexes near schools such as Florida State University, Kennesaw State University in Georgia and Arizona State University are being forced to cut rents to fill beds.

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