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Berkadia: Strong Fundamentals Underpin Student Housing Investments
Student housing remains “an excellent investment vehicle,” Berkadia says in its latest U.S. Student Housing Pipeline Report. The report cites the sector’s ‘impressive fundamentals,” including a year-over-year increase of 0.6% in fall enrollment at the top 175 universities and a 150-basis-point increase in student housing occupancy near these schools compared to the five years preceding the pandemic.
Effective rent growth among the top universities was 7.9% from August 2022 to August 2023, according to Berkadia. That’s more than three times greater than the rate of rent growth for market-rate apartments nationwide. At 11.9%, the Rocky Mountain region saw the highest Y-O-Y rent growth.
New, on-campus student housing supply through 2025 has the potential to reach its highest share since 2017, the report states. Year-over-year data on new housing supply across regions shows that Texas/Oklahoma experienced the highest annual change for 2024 (+62.1%).
Pictured: Allina La Jolla student housing near the University of California-San Diego.
- ◦Sale/Acquisition
- ◦Development
