Student housing preleasing continues to be robust even as rent growth has decelerated, according to the latest Yardi Matrix National Student Housing Report. While rent growth has remained at a solid four percent, preleasing has reached 54.5% in January. This is more than 15% above the five-year average.
The preleasing demand is shown to be strong as 22 schools are already at least 75% preleased, while four are above 90%. Some previously underperforming markets have seen a significant growth in student housing preleasing. For example, the University of Mississippi and University of Missouri—two schools previously among the worst-performing markets in the past few years—are 98% and 70% preleased, respectively.
Student Housing Preleasing Year-Over-Year Growth
A few of the top universities in the country with the most year-over-year growth in percentage preleased include:
- University of Mississippi | 47.8% YOY growth
- Binghamton University | 39.1% YOY growth
- Oregon State | 27.5% YOY growth
- Johns Hopkins University | 25.3% YOY growth
- University of Missouri | 23.2% YOY growth
Rent Growth in Student Housing for 2024
Yardi 200 rents averaged $863 per bed in January, up 4.4% year-over-year, according to the report. Overall, strong preleasing indicates student housing owners can expect solid revenue growth for the upcoming 2024 school year.
Markets like Tennessee, Mississippi, Purdue, and Kentucky are witnessing the highest rent growth in student housing. This surge coincides with a significant enrollment increase across these universities, all experiencing growth exceeding 4% so far this year.
Rent has dipped in markets like Southern California, Nevada-Reno, Nebraska, Utah Valley, and UC-Davis, where new housing deliveries surged and enrollment growth lagged.
Click here to read the full Yardi Matrix National Student Housing Report.
