American Campus Communities (ACC), a large REIT focused on student housing, became one of the first to realize that demand for student homes may be on the decline. This spells bad news for a sector that apparently rushed in, looking for golden opportunities.
CNBC has more:
It was the latest victory in a long run of victories for American Campus Communities—the largest and, analysts say, best managed among the three student housing REITs in the country. But this year, for the first time ever, ACC is struggling. Its shares are down 28 percent versus a decline of 3 percent for the Vanguard REIT Index ETF.
The problem: Investors are nervous about a glut of student housing and the possibility that college enrollments start to decline at the more expensive schools.
