Preleasing Pops

Matrix Student Housing Update

By Yardi Blog Staff on Feb 27, 2024 in Matrix

Student housing’s consistently rising preleasing rate exceeded 50 percent of tracked inventory by the end of January 2024, well ahead of last year’s figure, according to the latest Yardi Matrix National Student Housing Report.

Preleasing for the 2024-2025 school year reached 54.5 percent in January, marking a 710-basis-point increase since January 2023. A total of 22 markets were at least 75 percent preleased, while four exceeded the 90 percent rate. A combination of enrollment growth and decreasing new supply is driving the sector’s performance.

Asking rates at Yardi 200 schools continued to climb to record highs, hitting $863 per bed in January. However, rent growth decelerated year-over-year, falling to 4.4 percent in January.

“Rent growth patterns in student housing vary by market. Some operators push rates hard at the beginning of the leasing season to test the market and ease rent growth later on to fill the remaining beds. Slowing rent growth also reflects the fact that increases were high a year ago,” say Matrix analysts.

Yardi Matrix forecasts that 46,285 new beds will deliver in 2024, marking a significant increase from the 35,610 beds delivered in 2023. Investment activity decelerated in 2023, with only 76 student housing properties changing hands.

Gain more insight in the new Yardi Matrix National Student Housing Report.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.