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Student Housing Preleasing, Rent Growth Decelerate; Still Ahead Y-O-Y
Preleasing at Yardi 200 schools reached 73.5% in April, exceeding last year’s rate by 50 basis points BUT decelerating somewhat from earlier in 2024, according to the latest Yardi Matrix National Student Housing Report.
Similar to the preleasing rate’s evolution, rent growth has slowed from the beginning of the leasing season, but is still above the long-term average of 3.5%. Rent growth slowed from 6.8% early on in the leasing season and has averaged 6% throughout the leasing season to date.
A total of 35 U.S. markets saw double digit rent growth, while 23 posted rent declines. State schools across the Sun Belt with growing enrollments have seen the biggest jumps in rents, according to Yardi Matrix.
Preleasing lately has trended in line with last year. A total of 19 Yardi 200 schools were at least 90% preleased as of April, including Ole Miss (100%), Kentucky (93.3%), Purdue (93%) and James Madison (92.5%). Conversely, 22 universities didn’t reach a 50% preleasing rate, such as UT–Arlington and Georgia State.
“Strong rent growth is indicative of solid demand for product and consolidation of higher education into the largest student housing markets, as primary state schools have been able to outgrow their peers,” Yardi Matrix reported.
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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