Preleasing for the 2024–2025 student housing season reached 73.5% in April, 50 basis points year-over-year (YOY). Although the pace has slowed down this year, preleasing has started earlier each year, outpacing typical pre-pandemic trends. That is according to the May 2024 Matrix Student Housing National Report.
Yardi Matrix Student Housing Preleasing Trends
Some operators note that a delay in FAFSA processing has impacted the sector, slowing down preleasing paces. Regardless, preleasing is up 10% or more YOY in 34 markets.
“With the leasing season one of the best yet, the tone at the recent Interface Student Housing Conference was very positive,” the report states. “At 73.5% in April, preleasing was similar to last year’s record pace, while rent growth moderated to 5.5% but remained well above average for the sector and for commercial real estate overall.”
Top 10 Universities With the Most Year-over-Year Growth in Percentage Preleased
- Central Michigan, Mount Pleasant, Mich. (23.5% growth in percentage preleased)
- Bowling Green State, Bowling Green, Ohio (19.7%)
- Ohio University, Athens, Ohio (19.3%)
- University of California – Riverside, Riverside, Calif. (18.7%)
- University of Kansas, Lawrence, Kan. (17.7%)
- University of Missouri, Columbia, Mo. (16.7%)
- San Diego State, San Diego, Calif. (16.4%)
- Southern California, Los Angeles, Calif. (15.7%)
- University of Nebraska, Lincoln, Neb. (14.2%)
- Temple University, Philadelphia, Pa. (14.1%)
Some schools have nearly preleased all of their beds, with 19 schools over 90% preleased in May 2024. Ole Miss is completely preleased, while Kentucky, Purdue, and James Madison are at around 93 percent.
Meanwhile, 37 markets are more than 10% behind last year’s pace for preleasing. This includes Buffalo (23% behind the 94.8% preleasing rate in April 2023), Arizona State (19% behind), and Wisconsin (10%).
RELATED
- March student housing preleasing in line with last year
- October had fastest start ever for student housing preleasing
- Student Quarters selected to manage 502-bed student housing community
Rent Growth Trends May 2024
Rent growth for May 2024 slowed as well but remains relatively strong. The average student housing rent rose 5.5% year-over-year in April, to $895 per bed. Though growth has slowed from the early stages of the leasing season, it remains near the 2024–2025 average of 6 percent.
Schools with declining rents include many that failed to reach 90% occupancy in Fall 2023, according to the Matrix report. This includes Washington State which had 81% occupancy and a rent drop of 8%, Southern California (84% occupancy, 6% rent decline), and Nevada-Reno (84% occupancy, 3% rent decline).
Universities like Tennessee lead the student housing market in terms of rent growth. Tennessee has rents up nearly 18% YOY in April, followed by Clemson (17%), Ohio State (15%), and North Texas (15%).
Related Stories
Sustainability | Feb 7, 2024
9 states pledge to accelerate transition to clean residential buildings
States from coast to coast have signed a joint agreement to accelerate the transition to pollution-free residential buildings by significantly expanding heat pump sales to meet heating, cooling, and water heating demand in coming years.
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.
Luxury Residential | Jan 30, 2024
Lumen Fox Valley mall-to-apartments conversion completes interiors
Architecture and interior design firm Morgante Wilson Architects (MWA) today released photos of its completed interiors work at Lumen Fox Valley, a 304-unit luxury rental community and mall-to-apartments conversion.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Apartments | Jan 26, 2024
New apartment supply: Top 5 metros delivering in 2024
Nationally, the total new apartment supply amounts to around 1.4 million units—well exceeding the apartment development historical average of 980,000 units.
Self-Storage Facilities | Jan 25, 2024
One-quarter of self-storage renters are Millennials
Interest in self-storage has increased in over 75% of the top metros according to the latest StorageCafe survey of self-storage preferences. Today, Millennials make up 25% of all self-storage renters.
Senior Living Design | Jan 24, 2024
Former Walgreens becomes affordable senior living community
Evergreen Real Estate Group has announced the completion of Bellwood Senior Apartments. The 80-unit senior living community at 542 25th Ave. in Bellwood, Ill., provides independent living options for low-income seniors.
Adaptive Reuse | Jan 23, 2024
Adaptive reuse report shows 55K impact of office-to-residential conversions
The latest RentCafe annual Adaptive Reuse report shows that there are 55,300 office-to-residential units in the pipeline as of 2024—four times as much compared to 2021.
Modular Building | Jan 19, 2024
Virginia is first state to adopt ICC/MBI offsite construction standards
Virginia recently became the first state to adopt International Code Council/Modular Building Institute off-site construction standards.
Mixed-Use | Jan 19, 2024
Trademark secures financing to develop Fort Worth multifamily community
National real estate developer, investor, and operator, Trademark Property Company, has closed on the land and secured the financing for The Vickery, a multifamily-led mixed-use community located on five acres at W. Vickery Boulevard and Hemphill Street overlooking Downtown Fort Worth.
