**Student Housing Trends Show Cooling Market in 2025**
A recent report by Yardi Matrix highlights a slowdown in student housing performance as of April 2025, indicating shifts in preleasing activity, rent growth, and new supply levels.
Key findings from the report include:
– **Preleasing Activity Softens**
Preleasing rates for the Yardi 200 tracked universities stood at 67.1% in March, slightly lower than the 67.7% recorded in April 2024. Notably, the data may be subject to downward revision as further information becomes available.
– **Rent Growth Slows**
The average advertised rent in March was $918, reflecting a 2.5% increase year over year. However, this marks a decline in leasing season rent growth, with 2024 averaging 3.9%, compared to 5.8% in 2023 and 7% in 2022.
– **New Supply Declines**
In 2024, 35,703 off-campus beds were delivered, down from 44,746 in 2023. Looking forward, Yardi Matrix forecasts further declines, with 32,100 beds expected in 2025 and 33,995 in 2026.
Despite these market cool-downs, enrollment has seen an uptick, particularly at primary state universities. However, enrollment at tertiary state and private institutions has declined, contributing to uneven growth across the sector.
Broader influences also play a role. The report notes that while favorable demographic trends support enrollment, geopolitical and policy factors may negatively impact international and graduate student numbers during the current presidential term.
Analysts pointed out that new construction is increasingly concentrated at top-tier “Power 5” universities such as the University of Tennessee, Ohio State University, Arizona State University, and the University of Minnesota. Even in these strongholds, off-campus housing is experiencing a slowdown in year-over-year rent increases.
Overall, the student housing market faces a complex mix of stabilizing demand, moderated rent growth, and declining supply, with implications for developers, investors, and campus communities nationwide.
