Student Housing Preleasing Continues Historic Pace, Reports Yardi Matrix

But rent growth has tempered and looks to be on par with 2023-2024

SANTA BARBARA, Calif., March 27, 2024 /PRNewswire/ -- Last month, the average student housing preleasing rate for Yardi 200 schools reached 61.5 percent, marking a 450-basis-point increase year-over-year, according to the latest Yardi® Matrix National Student Housing Report.

The market is healthy enough to absorb 46,000 new beds coming online, with demand fueled by enrollment growth. The average rent per bed reached $883 in February, showing a 5.2 percent increase since the same period last year. Year-over-year rent growth was down from the 6.7 percent recorded in October 2023.

A total of 16 universities were more than 80 percent preleased, including larger student markets like Ole Miss (98.7 percent), Purdue (88.7 percent), Tennessee-Knoxville (87.5 percent), Virginia Tech (87.2 percent) and Arkansas (86.8 percent). Only 35 schools were less than 40 percent preleased, compared to 47 percent in February 2023.

"Rent growth slowed each month of the leasing season but is well-above the average of 3.5 percent going back to the beginning of 2018, and well ahead of the general multifamily market, as student housing has proven to have much different demand drivers," note Matrix analysts.

Enrollment data collected from 178 universities shows that total enrollment was up 0.8 percent on a year-over-year basis, marking a significant increase from the -0.3 percent recorded in Fall 2022. Yardi Matrix forecasts that 46,285 new beds will come online in 2024, improving considerably on the 35,610 beds delivered in 2023.

Gain more insight in the new Yardi Matrix National Student Housing Report.

Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

View original content:https://www.prnewswire.com/news-releases/student-housing-preleasing-continues-historic-pace-reports-yardi-matrix-302099927.html

SOURCE Yardi