The 2024–2025 leasing season is starting to look more like last year, according to the March 2024 Matrix Student Housing National Report. However, preleasing is still increasing at a historically fast pace, surpassing 61% in February 2024. This marks a 4.5% increase year-over-year (YOY) and is well ahead of the five-year average of 48% in February.
The Yardi Matrix report provides insights from 178 schools with preleasing data. Today’s numbers show that preleasing trends are more than 10% ahead of the average from 2019–2022.
Student Housing Market Preleasing Trends
In February, 42 schools were more than 70% preleased, compared to only 29 at the same time last year. Just 35 schools were less than 40% preleased last month, compared to 47 in February 2023.
A few markets that failed to reach 90% occupancy last year—including the University of Southern California, Illinois State, Johns Hopkins, and Mississippi State—are now more than 10% ahead on preleasing this year.
Increasing from last month is the number of markets that are more than 10% behind last year’s pace. These twenty markets include Tennessee-Knoxville, ASU, and CU-Boulder.
RELATED:
- Student housing market expected to improve in 2024
- October had fastest start ever for student housing preleasing
- 9 exemplary student housing projects in 2022
A dozen universities have surpassed a 15% YOY growth in prelease percentage. Topping the list is the University of Mississippi (32.8% growth in percentage preleased), followed by the University of Missouri (22.4%), Central Michigan (20.7%), and Bowling Green State (20.2%).
Rent Growth and Bed Construction
As rent growth and demand has stayed solid, “student housing is outperforming nearly every asset class,” according to the report. Up 5.2% YOY is the average rent per bed, sitting at $883 in February 2024. This is the 33rd month in a row that rent has increased month-over-month.
Thirty-two schools posted double-digit rent growth in February while 26 markets have a rent decline. The Matrix report finds that many of the markets reporting double-digit rent growth are the same ones with a majority of beds preleased for the 2024–2025 school year.
Schools with less beds preleased such as UC-Berkeley, Washington State, and Nevada-Reno have also faced enrollment and/or supply issues. These markets averaged 43% preleased in February—20 points below the national average.
Bed Construction
Yardi Matrix’s supply forecast projects 46,285 new beds will be delivered this year. This is a sharp increase from the 35,610 delivered in 2023. Universities with the most beds under construction include:
- University of Tennessee: 3,961 beds under construction; 8,220 completed. Preleased at 88% with rent per bed at $1,136
- University of Texas: 3,460 beds under construction; 21,038 completed. Preleased at 71% with rent per bed at $1,161
- Florida State University: 3,167 beds under construction; 26,859 completed. Preleased at 69% with rent per bed at $840
- University of Minnesota: 2,709 beds under construction; 12,722 completed. Preleased at 53% with rent per bed at $1,024
- University of Georgia: 2,445 beds under construction; 12,903 completed. Preleased at 71% with rent per bed at $877
Related Stories
MFPRO+ Research | Feb 28, 2024
New download: BD+C's 2023 Multifamily Amenities report
New research from Building Design+Construction and Multifamily Pro+ highlights the 127 top amenities that developers, property owners, architects, contractors, and builders are providing in today’s apartment, condominium, student housing, and senior living communities.
Student Housing | Feb 28, 2024
Mary Cook Associates completes interiors for luxury student housing community
Chicago-based interior design firm Mary Cook Associates announced it has completed the interiors of Lapis, a new 1,086-bed off-campus luxury student housing community near Florida International University.
Student Housing | Feb 21, 2024
Student housing preleasing continues to grow at record pace
Student housing preleasing continues to be robust even as rent growth has decelerated, according to the latest Yardi Matrix National Student Housing Report.
Student Housing | Feb 19, 2024
UC Law San Francisco’s newest building provides student housing at below-market rental rates
Located in San Francisco’s Tenderloin and Civic Center neighborhoods, UC Law SF’s newest building helps address the city’s housing crisis by providing student housing at below-market rental rates. The $282 million, 365,000-sf facility at 198 McAllister Street enables students to live on campus while also helping to regenerate the neighborhood.
Student Housing | Feb 13, 2024
Student housing market expected to improve in 2024
The past year has brought tough times for student housing investment sales due to unfavorable debt markets. However, 2024 offers a brighter outlook if debt conditions improve as predicted.
Industry Research | Feb 8, 2024
New multifamily development in 2023 exceeded expectations
Despite a problematic financing environment, 2023 multifamily construction starts held up “remarkably well” according to the latest Yardi Matrix report.
Multifamily Housing | Feb 5, 2024
Wood Partners transfers all property management operations to Greystar
Greystar and Wood have entered into a long-term agreement whereby Greystar will serve as property manager for all current and future Wood developed and owned assets.
University Buildings | Jan 15, 2024
The death of single-use university buildings
As institutions aim to improve the lives of their students and the spaces they inhabit, flexible university buildings may provide an all-in-one solution.
Student Housing | Jan 12, 2024
UC Berkeley uses shipping containers to block protestors of student housing project
The University of California at Berkeley took the drastic step of erecting a wall of shipping containers to keep protestors out of a site of a planned student housing complex. The $312 million project would provide badly needed housing at the site of People’s Park.
