Student housing rents and pre-leasing set new records in March, according to the latest National Student Housing Report from Yardi Matrix. Rents increased 7% year-over-year (YOY) to an average of $829 per bedroom, a record high. Preleasing rates also surpassed last year’s record with 69.7% of beds at Yardi 200 universities preleased for the fall 2023 term – a 7.8 percentage point increase YOY.
Analysts from Matrix attribute this success to strong demand in competitive universities where enrollment is increasingly concentrated and downtowns with largely conventional multifamily markets have exacerbated the need for housing options even further. However, higher interest rates, reduced debt market liquidity and weakening investor demand are slowing development and sales activity across student housing investments; investors backed off purchases dramatically in Q1 2023 with just $148 million recorded compared to $1.5 billion during Q1 2022..
Overall it appears that while student housing continues its impressive performance when it comes to rent prices & preleasing levels there is still some uncertainty surrounding investment sales going forward due its current economic climate .
