1031 Exchanges of Student Housing

Student Housing 1031 Exchange

Many people are looking to do 1031 exchanges into student housing or other multifamily housing.

That segment has been one of the hottest and most popular segments in the real estate market. Why are people exchanging into student housing and multifamily? The reason is that other segments of the real estate market are viewed as being too risky or unstable.

Retail vs. Multifamily Property

Retail has been dramatically changed by Amazon and other online retailers. Maybe we don't need as many strip malls and brick-and-mortar shops any longer, but apartments and multifamily housing? Those areas are in high demand and it's argued that we're not building enough workforce housing to keep up with the demand of all the new households that are being created in the United States.

Furthermore, if we go through a period of high inflation, short-term substantial leases will be able to be ratcheted up and increased so that the rents stay current with inflation. Other types of commercial real estate that have long leases with relatively few and minor rent escalators won't be able to keep up with inflation like multi-family using will.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

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