Texas A&M Pauses Enrollment: How will this effect rental income and values?

Question

Direct from TAMU: "We plan to pause undergraduate growth on the main campus over the next five to seven years, while allowing graduate, online, and locations outside Bryan-College Station to continue growing at modest rates."

By my calculations, that’s roughly 1,500 fewer students per year no longer contributing to population growth in Bryan and College Station Texas over the next 5-7 years.

1. Do you think they’ll actually hold to this plan for five years?

2. Is this enough of a demand shock to significantly impact the local real estate market?

3. Have other college towns experienced something similar? If so, how did it affect their markets?

Gregory Schwartz · Answer

We've been having some good discussions around the impact. So far we can best relate it to the supply shock when nearly 3,000 multifamily units came online in just 2 years. Most of those were student housing. This had a noticeable impact on the rental market but only for a short time and we quickly rebounded. Of course, Im watching the market data closely

Joe S. · Answer

I doubt it’ll have any impact. Pre-venture it does have impact that would be great for a smart investor to take advantage of. Wink wink.

Texas A&M Pauses Enrollment: How will this effect rental income and values?

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