Student Housing Market Report – August 2024

Read the latest Yardi Matrix Student Housing Market Report.

Surveyed preleasing reached 89.2% in July, according to the latest Yardi Matrix national student housing market report.

Report highlights

• Surveyed preleasing for the Yardi 200 schools hit 89.2% in July, falling slightly behind July 2023
• The average advertised rent per bed clocked in at $897, marking a 4.7% increase year-over-year
• July transaction volume matched last year’s pace, with 45 properties changing hands in the first seven months of the year

Preleasing slows, but close to last year’s pace

As of July, the student housing sector’s preleasing rate hit 89.2%, slightly behind last year’s rate at this point. Surveyed preleasing was still 5% under fall 2023 occupancy levels, which settled at 94.6% last year. Still, in July 2024, 41 schools already exceeded their fall 2023 preleasing rates.

A total of 19 markets were at least 99% preleased in July. The universities with the largest year-over-year growth in percentage preleased were the University of Nebraska (14.5%), Bowling Green State (12.4%) and Illinois State (11.5%).

Some of the universities with the lowest preleasing rates were mostly secondary and tertiary state schools and private universities. A total of 25 markets were less than 75% preleased, with the largest schools in this group being UT-Arlington (71.2% preleased, 17.7% behind July 2023), UC Berkeley (72.3%, 3.8% behind) and Washington State (71.6%, 5.8% behind).

Rent growth continues to decelerate

The average advertised rent per bedroom stood at $897 in July, up 4.7% year-over-year. Advertised rent growth has continued to slow, decreasing from the nearly 7% high recorded earlier in the leasing season. From the beginning of the leasing year through July, rent growth averaged 6% for the fall 2024 season.

Rent growth has continued its downward trend as the school year progressed, with 36 schools reaching at least 10% growth and 34 markets posting worse performaces than at this point in 2023. In a handful of markets, strong rent growth led to slower preleasing rates than last year, including Ohio State (15.1% rent growth with preleasing of 82.1% 5.3% behind last year), UNC-Charlotte (14.2% rent growth, preleasing of 80.5% down 6.9%) and Cornell (11.9% rent growth, 81.2% preleased, 12.7% behind last year).

A total of 41,432 beds are slated for completion across Yardi 200 schools in 2024, Yardi Matrix experts predict. This volume would represent 5% decrease from the previous year. The 2025 forecast also decreased, while the 2026 forecast increased to 33,805 beds delivered each year.

Student housing transactions accelerated in the summer months, with a total of 45 properties changing hands year-to-date through July—on par with last year’s volume. The estimated average price per bed hit $81,627.

Read the full Yardi Matrix National Student Housing Market Report: August 2024.