National Student Housing Report – May 2024

Despite slowing, rent growth and preleasing remained strong in April, according to the latest Yardi Matrix report.

Image by Dianne Gralnick/iStockphoto.com
Student housing preleasing for the 2024-2025 school year is
trending more in line with last year, reaching
73.5 percent in April 2024. Image by Dianne Gralnick/iStockphoto.com

The student housing market continued its strong performance in April, with preleasing on par with last year’s record pace and moderating rent growth, according to the latest student housing report from Yardi Matrix.

Preleasing at Yardi 200 universities reached 73.5 percent in April, marking a 50-basis-point increase year-over-year. The average rent per bed hit $895, coupled with a 5.5 percent rent growth, slightly lower than the average 6 percent for the leasing season so far. While rent growth moderated, it remains well above the historical average growth rate of 3.5 percent.

Yardi Matrix forecasts that 46,285 new beds will come online across Yardi 200 schools in 2024—an increase compared to the 37,576 beds delivered in 2023. Investment has been similar to last year’s activity, with 18 properties sold in the first four months of 2024. The average price per bed climbed to $100,857—well ahead of previous years.

Rent growth slows but remains strong

Rent growth chart
Rent growth slowed from
6.8 percent early on in the season and 5.9 percent last month, but has averaged 6 percent throughout the leasing
season. Image courtesy of Yardi Matrix

With some schools already fully preleased for the 2024-2025 academic year, 19 markets were at least 90 percent preleased, including Ole Miss (100 percent), Kentucky (93.3 percent), Purdue (93 percent) and James Madison (92.5 percent). A total of 22 schools were less than 50 percent preleased as of April, such as UT–Arlington (44.7 percent) and Georgia State (47 percent).

As for rent growth, 35 markets posted double-digit increases, while 23 experienced rent declines. Large primary state schools and secondary and tertiary state schools especially across the Sun Belt which also had an increase in enrollment, have seen the biggest rent gains.

Tennessee continues to lead all large student housing markets in terms of rent growth, with rents up 17.6 percent since April 2023, followed by Clemson (16.7 percent), Ohio State (15.4 percent), North Texas (15.3 percent), Cornell (14.4percent) and Appalachian State (13.6 percent). Markets with declining rents, some of which didn’t hit the 90 percent preleasing mark for the fall 2023 school year, include Washington State (-8.1 percent), Sothern California (-5.7 percent) and Nevada-Reno (-3.4 percent).

Read the full Yardi Matrix report.

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