Canada’s student housing market faces a severe shortage, and Harrison Street Asset Management is placing a major bet on long-term growth in this sector, even as international student numbers decline. The firm specializes in off-campus housing and is now scaling up its Canadian operations with new developments near leading universities. One such project is a 458-unit building planned for Simon Fraser University (SFU), set to open in 2028.
Student Housing Demand Outpaces Supply
Demand for student housing remains exceptionally high, particularly around Canada’s top 20 universities. According to Mike Gordon, Harrison Street’s global chief investment officer for real estate, these institutions currently have only one purpose-built student housing unit for every six full-time students. This ratio falls far behind the U.S. and U.K., where supply is roughly double the Canadian level.
Domestic student enrollment is set to rise as Canada’s 15-19 age group expands over the next decade. International student numbers have fallen sharply—by 26% in the past year alone—and further declines are expected. While elite schools continue to attract strong applications, the drop in international students represents a major shift. Gordon emphasized that ignoring this change would be unwise, though he acknowledged that prestigious institutions still maintain competitive appeal.
British Columbia’s universities, including SFU and the University of British Columbia (UBC), are especially hard-hit by housing shortages. Near-campus, purpose-built student housing remains scarce, creating opportunities for private developers. Harrison Street’s first project near SFU, called Koto, provides 283 beds, while the upcoming Symposia development will add 458 more, nearly doubling its local capacity to 750 beds by 2028.
Higher Yields Drive Investor Interest
The company’s Canadian portfolio now includes around 4,500 beds, managed through its five-year-old Alternative Real Estate Fund. Gordon noted that student housing delivers higher yields than traditional multifamily housing, with faster tenant turnover enabling quicker rent escalation. New buildings with strong locations and amenities near top schools drive sustained demand.
Investment decisions rely on enrollment trends, institutional reputation, and detailed housing market analysis. The firm evaluates university-owned beds, purpose-built units, and conventional rentals, tracking rents, occupancy rates, and land availability. Proximity to campus is essential, buildings located too far from university centers often struggle to attract residents.
A 2025 report from EY Canada highlights the supply gap. In 2023, only 16% of Canada’s 1.5 million students had access to on- or off-campus housing, with vacancy rates at a historic low of 1.5%. The firm estimates that 400,000 new purpose-built beds are needed over the next six years to address demand. Even with federal visa restrictions in place, the shortage remains critical, prompting private developers to step in.
Universities Leverage Housing for Recruitment
Student housing has evolved into a key strategic asset for universities. Gordon explained that housing directly impacts enrollment, recruitment, and student retention. As universities increasingly partner with private investors, the sector is primed for expansion, particularly in undersupplied markets like British Columbia.
Students face intense competition for limited housing options. Those who secure spots in purpose-built units near campus gain access to proximity and modern amenities, but many must settle for distant or lower-quality alternatives due to the shortage. Without a major increase in new construction, the gap between demand and supply will persist.
Harrison Street’s focus on elite institutions reflects confidence in their ability to maintain enrollment levels despite declining international numbers. With projects like Symposia advancing, the company is well-positioned to capitalize on Canada’s long-term housing needs.
