In December, preleasing for student housing during the 2024-2025 academic year reached a record high of 47.3%, a significant increase of 9% from the previous year, according to Yardi Matrix’s latest National Student Housing Report. Asking rates also saw an upward trend, reaching $858 per bed and marking a noteworthy increase of 4.9% compared to last year.
This exceptional preleasing rate indicates strong renewal numbers in the market, with over half (51) of markets reporting at least a 50% rate in December and ten schools already achieving at least a75% preleased status. However, rent growth has slightly decreased from earlier in the leasing cycle (6.4%) to reach 4.9% by December.
According to experts at Yardi Matrix, many markets experiencing rapid preleasing are also seeing robust rent growth as operators capitalize on high demand levels.” On average,” they state,” twenty-seven schools with over10 %rent growth inDecember were five percent aheadof theirprelease figuresfromlastyear.”
Onthe other hand,the student housing investment sector is following current trends seen across all real estate industries due to rising interest rates impacting sales significantly.Preliminary data reveals that only73studenthousing properties changed handsin2023acrosstheYardi200.This number pales incomparisonwithanaverageof205properties sold between201and2o22.
Pictured: James Madison University locatedinHarrisonburg,Virginia,witnessedthefastestyear-over-yearpreleasinggrowthamongstalltheschoolslistedonYardilistings.Photo credit goes outtoBenSchumin/Wikipedia.The universityispartoftheyearly200listcompiledbyConnectCRE.
