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Student Housing Rents Reach Record High
Preleasing at Yardi 200 schools hit 67.7% in March, exceeding last year’s pace by 2.4%, while rent growth accelerated to 6%, Yardi Matrix said in its latest National Student Housing Report. As of March, the average rent reached $895 per bedroom, marking an all-time high for the sector. Forty-one universities had double-digit rent growth, while 21 markets had negative rent movement of negative 1% or less.
With data gathered from more than 1,500 properties at 187 schools, Yardi Matrix found that 46 universities had preleasing rates over 75%. Eight schools were more than 90% preleased, including Ole Miss (99.4%), Purdue (91.7%), Appalachian State (91.6%) and Kentucky (90.4%).
“Rent growth had been high but trending down early in the leasing season,” according to Yardi Matrix. “It picked up again in March as students returned from spring break. Rent growth in student housing is being driven by surging demand, particularly at the schools with the strongest recent enrollment growth, a clear indication of the countercyclical nature of the product type.”
Preliminary data on enrollment growth show an average jump of 0.7% in enrollment year-over-year, for the fall 2023 school year. Large, primary state schools in Power 5 conferences benefitted most from enrollment growth.
Don’t miss the Lifetime Achievement Award Presentation and Keynote Interview with G. Joseph Cosenza, Vice Chairman of The Inland Real Estate Group, LLC and President of Inland Real Estate Acquisitions, LLC at Connect Midwest: Multifamily, Affordable, Student & Senior Housing Trends on June 4, 2024, at the W-Chicago, City Center Hotel, Chicago, IL. Register Today to network with your peers!
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