National Student Housing Report – September 2024
Preleasing and rent growth decelerated at the end of the leasing season, according to Yardi Matrix.
Yardi 200 reached 92.9 percent in August 2024. Image by Drazen_/iStockphoto.com
As many schools welcomed student tenants back at the end of summer, surveyed preleasing for Yardi 200 institutions reached 92.9 percent in August, 20 basis points ahead of August 2023, according to the latest Yardi Matrix strident housing report. Rent growth dipped to 4 percent approaching the end of the leasing season, further lowering the average to 5.8 percent since October 2023.
FAFSA processing may have set back enrollment rates and is one of the reasons why the exceptionally strong preleasing at the beginning of the season slowed in April. In August, a total of 78 markets had already reached or exceeded September 2023 occupancy, while 29 universities were 10 percent or more behind that figure.
A cluster of 35 schools were at least 99 percent preleased at the end of August, including Oklahoma State, Ohio, Oregon State, VCU, Auburn and Illinois State. Oppositely, the list of 35 universities that were less than 85 percent preleased comprised UNC-Charlotte (84.4 percent), Temple (82.9 percent), East Carolina (82.3 percent), Miami-Oxford (80.2 percent) and UT-Arlington (78.4 percent).
Rent growth continues to slow
The average advertised rent per bedroom across Yardi 200 hit $892 in August, marking a $5 decrease from the previous month and 4 percent less than at the same point last year. Rent growth was highest at the beginning of the leasing season at 7 percent and has decreased in the past nine months.
Across markets, rent growth ranged from UC-Berkeley’s -12.8 percent— which had the highest rent per bed of any market at $2,542—to 16.3 percent at Kennesaw State. The top 10 markets for rent growth recorded flat or increased enrollment numbers, averaging a 3.3 percent increase compared to 0.4 percent enrollment growth across Yardi 200.
Yardi Matrix’s supply forecast predicts that 41,432 will be delivered at Yardi 200 schools this year, which would entail a 6 percent decrease from the previous forecast and 5 percent less than in 2023.
