Student Housing Surges Ahead in Healthy Building Certification, Outpacing Luxury Offices

Written by:

Alejandra Rodriguez

Date:

30 Apr 2026

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Just a few years ago, healthy building certification was primarily the domain of high-end office buildings. Developers and corporate tenants competed to offer better air quality, natural light, and wellness features to attract top talent. Today, the strongest and fastest-growing demand for these certifications is coming from student housing — a shift that has reshaped priorities across the real estate industry.

Joanna Frank, CEO of the Center for Active Design, has seen this change play out across the organization’s global portfolio. Before the pandemic, residential demand for healthy building certification was minimal. Now, student housing is the fastest-growing sector for certifications like Fitwel, driven by students’ heightened awareness of how living environments affect mental health, social connection, and academic performance.

Meanwhile, luxury offices — once the early adopters of wellness strategies – are slowing their pace as remote work, higher vacancies, and economic uncertainty force owners and investors to be more cautious.

Students Are Raising the Bar for Healthy Living

Today’s students are more direct than previous generations about how their surroundings impact their overall well-being. They recognize that factors such as air quality, natural light, noise control, and communal spaces influence their mood, ability to connect with others, and academic performance. As a result, they are actively selecting housing that demonstrates a commitment to health, verified through certification.

Student housing developers that pursue Fitwel or similar certifications report faster lease-ups and stronger financial performance. The features that matter most — high indoor air quality, access to daylight, quiet study areas, and inviting communal spaces — are now central to marketing efforts and are often cited as reasons for choosing one property over another. Certification provides measurable proof that these features are in place.

Frank notes that these aren’t expensive upgrades, but rather targeted strategies that can be verified and communicated to prospective residents. “Spaces actually make a difference as far as whether or not you’re social,” she says, highlighting the importance of design in shaping student experiences.

High-End Residential Sees Similar Gains

The trend isn’t limited to student housing. Luxury residential developers are also using healthy building certification to attract tenants and outperform financial projections. According to Frank, clients who certify high-end residential properties with Fitwel are seeing faster lease-ups and higher rents than anticipated.

Recent research supports this. A 2025 Cambridge University study found that properties with healthy building certification command a rent premium of 4.4 to 4.8 percent, echoing results from a 2020 MIT study. While tenants may not always know the technical details, they can feel the difference in healthier buildings. “People can perceive the difference,” Frank says. “We don’t have to be told this is a healthy building. We actually know that.”

Features driving this premium include superior air quality, abundant natural light, effective noise reduction, and well-designed common areas — elements that are now expected at the top end of the residential market.

Hospitality Adopts Health Certification to Compete

The hospitality sector is also seeing rapid adoption of healthy building standards. Guests are increasingly weighing air quality and sound control alongside traditional amenities when choosing where to stay. Hotels that can verify a healthier environment through certification are differentiating themselves in crowded markets, leading to higher occupancy rates and stronger guest satisfaction.

“Hospitality is an experience asset type,” Frank explains. Properties that deliver a healthier, more comfortable stay are seeing clear advantages over competitors.in wellness features to attract and retain talent to attract and retain talent with wellness features.

That demand remains, but office landlords are now more hesitant to invest aggressively. Higher vacancies and uncertainty about long-term occupancy have made some investors cautious. Still, Class A office tenants continue to ask for better indoor air quality and wellness features. “You want to be the one to provide it to them,” Frank says.

However, implementing these features — especially advanced air quality monitoring — has been slow. Owners worry that new sensors could reveal problems they are not prepared to fix, especially when some issues stem from tenant activities, such as off-gassing furniture or strong fragrances.

Despite these challenges, Frank expects the industry will eventually address these gaps because the benefits are clear: higher productivity, fewer sick days, and improved mental health. “The demand is strong enough that the industry will start to solve for it more than they are doing today,” she says.

What Investors Should Prioritize

For investors in student housing, pursuing health certification is now a core strategy. Students are actively choosing properties that prove they support well-being, and certification provides a clear market differentiator.

Luxury residential developers can command higher rents and lease up faster by emphasizing health features in both design and marketing. Certification offers third-party validation that helps justify premium pricing.

Office asset managers should not delay investments in indoor air quality and wellness features. As the office market stabilizes, properties that can prove their health credentials will have a clear advantage in attracting and retaining tenants.

In hospitality, healthy building certification is becoming a key part of the guest experience. Hotels that can demonstrate better air quality and quieter rooms are outperforming competitors in occupancy and guest satisfaction.

Looking Ahead

The focus on healthy building certification is no longer limited to one segment of real estate. Student housing and high-end residential markets are now leading, with clear, measurable demand from tenants. Office buildings remain important, but adoption is more cautious as owners weigh costs and operational challenges. The core expectation — that buildings should actively support occupant health — is not fading. As Frank puts it, “How people are affected by buildings is a forever piece of the puzzle.” Investors and developers who recognize where demand is strongest are already seeing tangible results.

About the Expert: Joanna Frank is the founding president and CEO of the Center for Active Design and Active Design Advisors, which operate the Fitwel healthy building certification. With a background in real estate development and nearly 15 years leading CfAD, Frank works with institutional investors, REITs, and global asset managers to optimize building performance through health-focused design and operations.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.