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
Multifamily Housing | May 16, 2023
Legislators aim to make office-to-housing conversions easier
Lawmakers around the country are looking for ways to spur conversions of office space to residential use.cSuch projects come with challenges such as inadequate plumbing, not enough exterior-facing windows, and footprints that don’t easily lend themselves to residential use. These conditions raise the cost for developers.
Multifamily Housing | Apr 27, 2023
Watch: Specifying materials in multifamily housing projects
A trio of multifamily housing experts discusses trends in materials in their latest developments. Topics include the need to balance aesthetics and durability, the advantages of textured materials, and the benefits of biophilia.
Contractors | Apr 10, 2023
What makes prefabrication work? Factors every construction project should consider
There are many factors requiring careful consideration when determining whether a project is a good fit for prefabrication. JE Dunn’s Brian Burkett breaks down the most important considerations.
Multifamily Housing | Mar 24, 2023
Multifamily developers offering new car-free projects in car-centric cities
Cities in the South and Southwest have eased zoning rules with parking space mandates in recent years to allow developers to build new housing with less parking.
Building Tech | Mar 14, 2023
Reaping the benefits of offsite construction, with ICC's Ryan Colker
Ryan Colker, VP of Innovation at the International Code Council, discusses how municipal regulations and inspections are keeping up with the expansion of off-site manufacturing for commercial construction. Colker speaks with BD+C's John Caulfield.
Student Housing | Mar 13, 2023
University of Oklahoma, Missouri S&T add storm-safe spaces in student housing buildings for tornado protection
More universities are incorporating reinforced rooms in student housing designs to provide an extra layer of protection for students. Storm shelters have been included in recent KWK Architects-designed university projects in the Great Plains where there is a high incidence of tornadoes. Projects include Headington and Dunham Residential Colleges at the University of Oklahoma and the University Commons residential complex at Missouri S&T.
Student Housing | Mar 5, 2023
Calif. governor Gavin Newsom seeks to reform environmental law used to block student housing
California Gov. Gavin Newsom wants to reform a landmark state environmental law that he says was weaponized by wealthy homeowners to block badly needed housing for students at the University of California, Berkeley.
Green Renovation | Mar 5, 2023
Dept. of Energy offers $22 million for energy efficiency and building electrification upgrades
The Buildings Upgrade Prize (Buildings UP) sponsored by the U.S. Department of Energy is offering more than $22 million in cash prizes and technical assistance to teams across America. Prize recipients will be selected based on their ideas to accelerate widespread, equitable energy efficiency and building electrification upgrades.
Multifamily Housing | Mar 1, 2023
Multifamily construction startup Cassette takes a different approach to modular building
Prefabricated modular design and construction have made notable inroads into such sectors as industrial, residential, hospitality and, more recently, office and healthcare. But Dafna Kaplan thinks that what’s held back the modular building industry from even greater market penetration has been suppliers’ insistence that they do everything: design, manufacture, logistics, land prep, assembly, even onsite construction. Kaplan is CEO and Founder of Cassette, a Los Angeles-based modular building startup.
Multifamily Housing | Feb 11, 2023
8 Gold and Platinum multifamily projects from the NAHB's BALA Awards
This year's top BALA multifamily winners showcase leading design trends, judged by eight industry professionals from across the country.
