Student housing is poised for another solid performance in 2023 after record returns last year, according to the latest National Student Housing Report from Yardi Matrix. As of December 2022, 48% of beds at Yardi 200 universities were already leased for the fall 2023 school year, a new record high for this time of year. On the investment sales front, 2022’s nearly $5 billion in volume was just short of the peak set in 2021.

“Momentum is strong heading into the new year, even as the effect of higher interest rates takes hold in the economy and has led multifamily rents to decelerate,” say Matrix experts. “Student housing remains largely unaffected, as the industry typically does better during times of economic volatility.” 

Rent growth also remained strong, at 4.7% annual growth in December. Annual rent growth peaked in June of last year at 5.2%, and growth has hovered between 4.5% and 5% each month since, according to Yardi Matrix. 

“With over eight months to go until the start of the next school year, we anticipate 2023 being another record-breaking year for student housing performance,” the report states. One caveat: highly selective universities with name recognition are maintaining their interest among incoming students, while smaller schools are having more difficulty with enrollment.

Pictured: Purdue University in West Lafayette, IN, which led universities in annual rent growth during 2022.