National Student Housing Report – February 2024

Student housing preleasing continues at record pace, according to the latest report from Yardi Matrix.

Student housing preleasing for the 2024-2025 school year continued to surge, exceeding last year’s record highs, according to the latest student housing report from Yardi Matrix. As of January 2024, preleasing at Yardi 200 schools reached 54.5 percent, up 710 basis points on a year-over-year basis. Asking rates are also reaching record levels, though rent growth decelerated.

Expanding enrollment and less newly delivered supply are two of the driving factors behind the sector’s stellar performance this new leasing season. Fall 2023 enrollment data from 165 schools point towards an average of 0.8 percent in enrollment growth compared to the previous year.

Yardi Matrix forecasts that by the end of 2024, a total of 46,285 new beds will be added to the existing stock, significantly higher than the 35,610 beds delivered in 2023. As for investment activity, the sales volume in 2023 comprised only 76 properties, compared to an annual average of 205 properties sold in the previous two years.

Preleasing and rents at records highs

Operators have been starting preleasing earlier each year. As of January 2024, a total of 22 universities were already 75 percent preleased, while four exceeded a 90 percent rate. Only 34 schools were less than 30 percent preleased, significantly lower than the 50 at the same point last year. University of Mississippi (47.8 percent), Binghamton University (39.1 percent) and Oregon State (27.5 percent) had the biggest jumps in year-over-year preleasing growth.

The average rent per bed across Yardi 200 universities reached $863 in January, marking a 4.4 percent increase since the same period in 2023. Yardi Matrix recorded double-digit rent growth in 24 schools, while 32 universities had less than -0.5 percent growth. Universities such as Tennessee, Ole Miss, Purdue and Kentucky were more than 80 percent preleased and also had strong enrollment growth—a trend for

Read the full Yardi Matrix report.

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