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Student Housing Performance Buoyed by Healthy Demand
The student housing industry continued to ride healthy demand and strong fundamentals to another record-breaking performance in the third quarter and 2022 overall, according to Yardi Matrix’s quarterly National Student Housing Report. The fall pre-leasing period saw 96.6% of bedrooms at Yardi 200 universities leased, with 4.1% annual rent growth.
Although the pace of pre-leasing was faster for selective universities with higher enrollment, positive performance was widespread among university types across the country. Twelve universities had double-digit year-over-year growth in pre-leasing levels in September, led by Washington State University (18.9% growth) and the University of Houston (16.4%).
At some popular schools with growing enrollments, available student housing supply hasn’t been sufficient to house the incoming class, reported Yardi Matrix. A problem that used to be unique to California schools has now become more widespread.
“While student housing rent growth is starting to decelerate, there is still a significant spread between student housing and multifamily rents, which could support continued growth over the next couple of years,” the report states. “The impact of multifamily rent trends on student housing will be stronger in university areas with a prominent shadow market, given the availability of options within a close radius.”
- ◦Lease
