Read the latest Yardi Matrix Student Housing Market Report.
Report highlights
- The student housing market entered the 2023-2024 school year with a preleasing rate of 94%, just 0.2% behind last year’s average in August
- Transaction volume suffered a significant decrease in the past months and was down 72.6% from last year’s total year-to-date through August
- Development was still strong, with roughly 40,000 beds expected to deliver in the fall of 2023
As of August, preleasing at Yardi 200 universities reached 94%, just 0.2% lower than at this point last year and significantly higher than the previous three-year’s average of 89.2%.
A total of 40 schools were fully leased for the 2023-2024 school year, with 40% of these reaching maximum preleasing in August. Across Yardi 200, 13 universities recorded at least a 10% jump in preleasing compared to last year, while 10 institutions were 10% ore more behind August 2022 preleasing levels.
The top three institutions that saw the biggest year-over-year growth in percentage preleased were the University of Southern Mississippi (22.7%), Ohio University (18.7%) and University of Mississippi (14.4%). Some schools struggled with achieving desired preleasing rates: 26 Yardi 200 universities were less than 85% preleased as of August, roughly 8.6% behind last year’s average.
Rents growth was strong through the leasing season
As of August, student housing rent growth at Yardi 200 averaged at 6.9%, up 2.4 percent since the same period last year, but down 7.3% since July. Throughout the leasing season, year-over-year rent growth averaged 6.8%, well above the previous season’s the 3.6% average. The overall rent per bedroom in August remained at the record level of $845.
Driven by enrollment growth and a limited number of student housing properties completed this year, a number of large public schools recorded strong rent increases across Yardi 200. Arizona State University–Tempe, The University of Arkansas and University of Tennessee all had rent growths that exceeded 19% in August, while boasting an average enrollment growth of 6% in 2022.
Read the full Matrix Student Housing Report-September 2023.
Add Comment