Student housing preleasing continues to be robust even as rent growth has decelerated, according to the latest Yardi Matrix National Student Housing Report. While rent growth has remained at a solid four percent, preleasing has reached 54.5% in January. This is more than 15% above the five-year average.
The preleasing demand is shown to be strong as 22 schools are already at least 75% preleased, while four are above 90%. Some previously underperforming markets have seen a significant growth in student housing preleasing. For example, the University of Mississippi and University of Missouri—two schools previously among the worst-performing markets in the past few years—are 98% and 70% preleased, respectively.
Student Housing Preleasing Year-Over-Year Growth
A few of the top universities in the country with the most year-over-year growth in percentage preleased include:
- University of Mississippi | 47.8% YOY growth
- Binghamton University | 39.1% YOY growth
- Oregon State | 27.5% YOY growth
- Johns Hopkins University | 25.3% YOY growth
- University of Missouri | 23.2% YOY growth
Rent Growth in Student Housing for 2024
Yardi 200 rents averaged $863 per bed in January, up 4.4% year-over-year, according to the report. Overall, strong preleasing indicates student housing owners can expect solid revenue growth for the upcoming 2024 school year.
Markets like Tennessee, Mississippi, Purdue, and Kentucky are witnessing the highest rent growth in student housing. This surge coincides with a significant enrollment increase across these universities, all experiencing growth exceeding 4% so far this year.
Rent has dipped in markets like Southern California, Nevada-Reno, Nebraska, Utah Valley, and UC-Davis, where new housing deliveries surged and enrollment growth lagged.
Click here to read the full Yardi Matrix National Student Housing Report.
RELATED:
Related Stories
MFPRO+ Research | Feb 28, 2024
New download: BD+C's 2023 Multifamily Amenities report
New research from Building Design+Construction and Multifamily Pro+ highlights the 127 top amenities that developers, property owners, architects, contractors, and builders are providing in today’s apartment, condominium, student housing, and senior living communities.
Student Housing | Feb 28, 2024
Mary Cook Associates completes interiors for luxury student housing community
Chicago-based interior design firm Mary Cook Associates announced it has completed the interiors of Lapis, a new 1,086-bed off-campus luxury student housing community near Florida International University.
Student Housing | Feb 19, 2024
UC Law San Francisco’s newest building provides student housing at below-market rental rates
Located in San Francisco’s Tenderloin and Civic Center neighborhoods, UC Law SF’s newest building helps address the city’s housing crisis by providing student housing at below-market rental rates. The $282 million, 365,000-sf facility at 198 McAllister Street enables students to live on campus while also helping to regenerate the neighborhood.
Student Housing | Feb 13, 2024
Student housing market expected to improve in 2024
The past year has brought tough times for student housing investment sales due to unfavorable debt markets. However, 2024 offers a brighter outlook if debt conditions improve as predicted.
Industry Research | Feb 8, 2024
New multifamily development in 2023 exceeded expectations
Despite a problematic financing environment, 2023 multifamily construction starts held up “remarkably well” according to the latest Yardi Matrix report.
Multifamily Housing | Feb 5, 2024
Wood Partners transfers all property management operations to Greystar
Greystar and Wood have entered into a long-term agreement whereby Greystar will serve as property manager for all current and future Wood developed and owned assets.
University Buildings | Jan 15, 2024
The death of single-use university buildings
As institutions aim to improve the lives of their students and the spaces they inhabit, flexible university buildings may provide an all-in-one solution.
Student Housing | Jan 12, 2024
UC Berkeley uses shipping containers to block protestors of student housing project
The University of California at Berkeley took the drastic step of erecting a wall of shipping containers to keep protestors out of a site of a planned student housing complex. The $312 million project would provide badly needed housing at the site of People’s Park.
MFPRO+ News | Dec 22, 2023
Document offers guidance on heat pump deployment for multifamily housing
ICAST (International Center for Appropriate and Sustainable Technology) has released a resource guide to help multifamily owners and managers, policymakers, utilities, energy efficiency program implementers, and others advance the deployment of VHE heat pump HVAC and water heaters in multifamily housing.
Giants 400 | Dec 20, 2023
Top 40 Student Housing Construction Firms for 2023
Findorff, Juneau Construction, JE Dunn Construction, and Weitz Company top BD+C's ranking of the nation's largest student housing facility general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
