National Student Housing Report – August 2024
Preleasing has surged ahead of pre-pandemic averages, according to the latest report from Yardi Matrix.
Surveyed preleasing for Yardi 200 schools reached 89.2 percent in July, falling slightly behind July 2023 after leading last year for most of the leasing season, according to the latest national student housing report from Yardi Matrix. Still, preleasing was ahead of pre-pandemic averages, while rent growth is still outperforming the conventional multifamily sector.
As of July, the student housing sector was 5 percent behind fall 2023 occupancy levels, which settled at 94.6 percent last year. Nevertheless, 41 schools already reached and exceeded their fall 2023 preleasing levels.
The average advertised asking rent per bedroom clocked in at $897 in July, marking a 4.7 percent increase year-over-year. Advertised asking rent growth has slowed, falling from nearly 7 percent recorded earlier in the leasing season, and averaged 6 percent for the season.
Yardi Matrix expects that 41,432 beds will be delivered across Yardi 200 schools in 2024, representing a 5 percent decrease from the previous year.
Student housing transactions have picked up pace in the past months, with a total of 45 properties changing hands year-to-date through July—on par with last year. The estimated average price per bed reached $81,627.
Preleasing slows, but still higher than historic average
late 2023. Image courtesy of Yardi Matrix
A total of 19 markets were at least 99 percent preleased in July. The universities with the biggest year-over-year growth in percentage preleased were the University of Nebraska (14.5 percent), Bowling Green State (12.4 percent) and Illinois State (11.5 percent).
Some of the markets with the lowest surveyed preleasing rates were mostly secondary and tertiary state schools and private universities. A total of 25 markets were less than 75 percent preleased, with the largest schools in this group being UT-Arlington (71.2 percent preleased, 17.7 percent behind July 2023), UCBerkeley (72.3 percent, 3.8 percent behind) and Washington State (71.6 percent, 5.8 percent behind).
Rent growth has continued to decelerate as the school year progressed, with 36 universities reaching at least 10 percent growth and 34 markets performing worse than at this point last year. In a few markets, strong rent growth led to slower preleasing rates than in 2023, including Ohio State (15.1 percent rent growth with preleasing of 82.1 percent 5.3 percent behind last year), UNC-Charlotte (14.2 percent rent growth, preleasing of 80.5 percent down 6.9 percent) and Cornell (11.9 percent rent growth, 81.2 percent preleased, 12.7 percent behind last year).
