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“Canada has a housing problem inside of a housing problem,” Gordon said.

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Purpose-built housing provided by universities and private operators accommodates only 15 per cent of full-time students in Canada’s largest markets, according to Gordon.

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Still, a shortage of beds does not make every university an attractive investment. “We essentially underwrite the university before we underwrite the building,” he said.

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Gordon said Harrison Street examines enrollment trends, student demographics, the institution’s financial position and whether demand can support the rents the new development would require.

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Those calculations have become more consequential since Ottawa’s restrictions on international students disrupted enrolment assumptions at some institutions.

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For Gordon, the upheaval reinforces the need to be selective.

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“The international student reset doesn’t make selectivity less important,” he said. “Frankly, it makes selectivity the investment thesis.”

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Gordon said the decline in international students has not been felt equally across institutions, pointing to universities with deep application pools, established academic brands and a history of strong enrollment growth as better positioned to maintain demand.

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Harrison Street’s Canadian developments include Koto, a privately-owned student residence on land leased by Simon Fraser University (SFU) within UniverCity, a master-planned residential community adjacent to the university’s Burnaby, B.C. campus. The residence opened in the second quarter of this year, with rents starting at approximately $1,250 a month. Gordon said it is approaching full occupancy.

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Koto, however, is not a formal public-private partnership with SFU.

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Harrison Street has not yet completed a formal public-private partnership with a Canadian university, but Gordon said the firm is in discussions with institutions exploring private-capital for on-campus housing. Several universities have also issued requests for proposals seeking development partnerships, particularly for first-year housing, he said.

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Getting private money through the door, however, is only the beginning of the financial calculation.

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“The private developer is going to expect a return,” Moffatt said.

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Whatever efficiencies come from using a private developer need to be weighed against that expectation, he added, and whether the arrangement ultimately costs less is not guaranteed.

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“It could end up being cheaper, or it could be a lot more expensive (in the long run),” he said.

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Another question is whether the money saved by the university translates into lower residence costs for students is a separate question.

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Ontario Tech has not finalized opening rates for The Ridge. TMU says its goal is to offer Bond Street beds priced below market averages but has not disclosed final rates. At U of T, Mabury said residence fees will continue to be set by the university’s group and approved through its annual governance process.

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HOUSE Toronto’s concern comes against an already expensive housing backdrop for students and what the growing role of capital could mean for those costs. Its research found that U of T’s existing housing supply already leaves most St. George students reliant on the private rental market.

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“Student residences as profit sources for private partners puts a greater financial burden on post-secondary students,” the group said in an email.

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The group argues that federal and provincial governments should instead provide low-cost financing so institutions such as U of T do not have to rely on public-private partnerships.