Annual average advertised rent growth dropped to five percent
(SANTA BARBARA, Calif., July 24, 2024) – Surveyed preleasing at colleges and universities tracked by Yardi® reached 85.2 percent in June, on par with last year’s pace and outpacing historic trends.
The average advertised asking rent per bed stood at $898 last month, while year-over-year rent growth slowed to five percent, according to the latest Yardi® Matrix National Student Housing Report. Averaging 6.1 percent asking rent growth for the season since October 2023, the Fall 2024 school year is shaping up to be one of the best for the student housing sector.
During the summer months, the pace of preleasing has slowed. Additionally, issues with FAFSA filing and processing pose a concern for near-term enrollment growth. Nevertheless, 39 universities were at least 94 percent preleased already, including 13 schools that reached at least 99.7 percent preleased.
A total of 41 universities posted double-digit rent growth in June. Large primary state schools like Tennessee and Purdue had the strongest rent growth. Smaller institutions such as Vermont (16.7 percent rent growth), San Jose State (15.8 percent), Oregon State (15.8 percent) and New Hampshire (15.6 percent), also stand out.
“Rent growth is most significantly impacted by preleasing and enrollment trends. The top four schools for rent growth were on average 93.4 percent preleased and experienced 4.7 percent enrollment growth in 2023, versus the bottom four which average 67.4 percent preleased.
Gain more insight in the new Yardi Matrix National Student Housing Report.
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