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
MFPRO+ News | Apr 12, 2024
Legal cannabis has cities grappling with odor complaints
Relaxed pot laws have led to a backlash of complaints linked to the odor emitted from smoking and vaping. To date, 24 states have legalized or decriminalized marijuana and several others have made it available for medicinal use.
Multifamily Housing | Apr 12, 2024
Habitat starts leasing Cassidy on Canal, a new luxury rental high-rise in Chicago
New 33-story Class A rental tower, designed by SCB, will offer 343 rental units.
MFPRO+ News | Apr 12, 2024
Greystar becomes top apartment owner, manager, and developer in 2024
One firm set records for this year’s National Multifamily Housing Council Top 50 roundup of multifamily firms. Greystar now sits at number one in the NMHC’s lists for top apartment owner, manager, and developer in 2024.
Student Housing | Apr 12, 2024
Construction begins on Auburn University’s new first-year residence hall
The new first-year residence hall along Auburn University's Haley Concourse.
MFPRO+ News | Apr 10, 2024
5 key design trends shaping tomorrow’s rental apartments
The multifamily landscape is ever-evolving as changing demographics, health concerns, and work patterns shape what tenants are looking for in their next home.
Architects | Apr 2, 2024
AE Works announces strategic acquisition of WTW Architects
AE Works, an award-winning building design and consulting firm is excited to announce that WTW Architects, a national leader in higher education design, has joined the firm.
Affordable Housing | Apr 1, 2024
Biden Administration considers ways to influence local housing regulations
The Biden Administration is considering how to spur more affordable housing construction with strategies to influence reform of local housing regulations.
Affordable Housing | Apr 1, 2024
Chicago voters nix ‘mansion tax’ to fund efforts to reduce homelessness
Chicago voters in March rejected a proposed “mansion tax” that would have funded efforts to reduce homelessness in the city.
Standards | Apr 1, 2024
New technical bulletin covers window opening control devices
A new technical bulletin clarifies the definition of a window opening control device (WOCD) to promote greater understanding of the role of WOCDs and provide an understanding of a WOCD’s function.
Adaptive Reuse | Mar 30, 2024
Hotel vs. office: Different challenges in commercial to residential conversions
In the midst of a national housing shortage, developers are examining the viability of commercial to residential conversions as a solution to both problems.
