University Housing Bankruptcies Show Rare Misfires in Hot Market

Luxury college student housing projects, once feared to be in jeopardy of bankruptcy at the onset of the pandemic, have since become a magnet for real estate investors.

College students with money to burn have more cushy living options than ever as real estate developers continue building and improving on luxury-style facilities near the nation’s largest universities. As a result, the fears of distress in the sector that bubbled up during earlier parts of the Covid-19 pandemic have largely proven unwarranted.

“During Covid there was a big question about student housing as an asset class,” said Mitch Rosen, head of ...