Student Housing Asking Rents Reach New High, Reports Yardi Matrix

Preleasing at Yardi 200 schools hit 67.7 percent in March, exceeding last year's pace by 2.4 percent, while rent growth accelerated to six percent, according to the latest Yardi Matrix National Student Housing Report .

As of March, the average rent reached$895per bedroom, marking an all-time high for the sector. 41 universities had double-digit rent growth, while 21 markets had negative rent movement of one percent or less.

The top 22 schools for rent growth had average preleasing rates at 74 percent and above-national-average enrollment growth rates at 2.6 percent.

With data gathered from more than 1,500 properties at 187 schools, Yardi Matrix found that 46 universities had preleasing rates over 75 percent. A total of eight schools were more than 90 percent preleased, includingOle Miss(99.4 percent),Purdue(91.7 percent),Appalachian State(91.6 percent) andKentucky(90.4 percent).

"Rent growth had been high but trending down early in the leasing season. It picked up again in March as students returned from spring break. Rent growth in student housing is being driven by surging demand, particularly at the schools with the strongest recent enrollment growth, a clear indication of the countercyclical nature of the product type," state Matrix analysts.

The strong preleasing is backed by enrollment growth. Preliminary data points to an average jump of 0.7 percent in enrollment year-over-year, for the fall 2023 school year. Large, primary state schools in Power 5 conferences benefitted most from enrollment growth.

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