Preleasing for the 2024–2025 student housing season reached 73.5% in April, 50 basis points year-over-year (YOY). Although the pace has slowed down this year, preleasing has started earlier each year, outpacing typical pre-pandemic trends. That is according to the May 2024 Matrix Student Housing National Report.
Yardi Matrix Student Housing Preleasing Trends
Some operators note that a delay in FAFSA processing has impacted the sector, slowing down preleasing paces. Regardless, preleasing is up 10% or more YOY in 34 markets.
“With the leasing season one of the best yet, the tone at the recent Interface Student Housing Conference was very positive,” the report states. “At 73.5% in April, preleasing was similar to last year’s record pace, while rent growth moderated to 5.5% but remained well above average for the sector and for commercial real estate overall.”
Top 10 Universities With the Most Year-over-Year Growth in Percentage Preleased
- Central Michigan, Mount Pleasant, Mich. (23.5% growth in percentage preleased)
- Bowling Green State, Bowling Green, Ohio (19.7%)
- Ohio University, Athens, Ohio (19.3%)
- University of California – Riverside, Riverside, Calif. (18.7%)
- University of Kansas, Lawrence, Kan. (17.7%)
- University of Missouri, Columbia, Mo. (16.7%)
- San Diego State, San Diego, Calif. (16.4%)
- Southern California, Los Angeles, Calif. (15.7%)
- University of Nebraska, Lincoln, Neb. (14.2%)
- Temple University, Philadelphia, Pa. (14.1%)
Some schools have nearly preleased all of their beds, with 19 schools over 90% preleased in May 2024. Ole Miss is completely preleased, while Kentucky, Purdue, and James Madison are at around 93 percent.
Meanwhile, 37 markets are more than 10% behind last year’s pace for preleasing. This includes Buffalo (23% behind the 94.8% preleasing rate in April 2023), Arizona State (19% behind), and Wisconsin (10%).
RELATED
- March student housing preleasing in line with last year
- October had fastest start ever for student housing preleasing
- Student Quarters selected to manage 502-bed student housing community
Rent Growth Trends May 2024
Rent growth for May 2024 slowed as well but remains relatively strong. The average student housing rent rose 5.5% year-over-year in April, to $895 per bed. Though growth has slowed from the early stages of the leasing season, it remains near the 2024–2025 average of 6 percent.
Schools with declining rents include many that failed to reach 90% occupancy in Fall 2023, according to the Matrix report. This includes Washington State which had 81% occupancy and a rent drop of 8%, Southern California (84% occupancy, 6% rent decline), and Nevada-Reno (84% occupancy, 3% rent decline).
Universities like Tennessee lead the student housing market in terms of rent growth. Tennessee has rents up nearly 18% YOY in April, followed by Clemson (17%), Ohio State (15%), and North Texas (15%).
Related Stories
Multifamily Housing | Dec 13, 2022
Top 106 multifamily housing kitchen and bath amenities – get the full report (FREE!)
Multifamily Design+Construction's inaugural “Kitchen+Bath Survey” of multifamily developers, architects, contractors, and others made it clear that supply chain problems are impacting multifamily housing projects.
Student Housing | Dec 7, 2022
9 exemplary student housing projects in 2022
Production continued apace this year and last, as colleges and universities, for-profit developers, and their AEC teams scrambled to get college residences open before the start of classes.
Student Housing | Dec 7, 2022
Cornell University builds massive student housing complex to accommodate planned enrollment growth
In Ithaca, N.Y., Cornell University has completed its North Campus Residential Expansion (NCRE) project. Designed by ikon.5 architects, the 776,000-sf project provides 1,200 beds for first-year students and 800 beds for sophomore students. The NCRE project aimed to accommodate the university’s planned growth in student enrollment while meeting its green infrastructure standards. Cornell University plans to achieve carbon neutrality by 2035.
Multifamily Housing | Nov 22, 2022
10 compelling multifamily developments debut in 2022
A smart home tech-focused apartment complex in North Phoenix, Ariz., and a factory conversion to lofts in St. Louis highlight the notable multifamily developments to debut recently.
Multifamily Housing | Oct 5, 2022
Co-living spaces, wellness-minded designs among innovations in multifamily housing
The booming multifamily sector shows no signs of a significant slowdown heading into 2023. Here is a round up of Giants 400 firms that are driving innovation in this sector.
Multifamily Housing | Sep 14, 2022
27 new kitchen and bath products multifamily developers and AEC teams are using for the first time
Multifamily developers and AEC project teams are adopting new kitchen + bath products and systems for the first time, according to the MULTIFAMILY Design+Construction Kitchen+Bath Survey 2022.
Multifamily Housing | Sep 13, 2022
Take the Multifamily Kitchen + Bath survey – Maybe win one of 10 $50 gift cards
Preliminary results of 2022 Multifamily Design+Construction exclusive Kitchen + Bath survey.
Giants 400 | Aug 29, 2022
Top 40 Student Housing Facility Contractors + CM Firms for 2022
J.H. Findorff & Son, PCL Construction Enterprises, Juneau Construction, and Sundt Construction top the ranking of the nation's largest student housing facility contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 29, 2022
Top 35 Student Housing Facility Engineering + EA Firms for 2022
Kimley-Horn, Wiss, Janney, Elstner Associates, KPFF Consulting Engineers, and Jacobs top the ranking of the nation's largest student housing facility engineering and engineering/architecture (EA) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Giants 400 | Aug 29, 2022
Top 70 Student Housing Facility Architecture + AE Firms for 2022
Niles Bolton Associates, Mithun, Gensler, and Perkins and Will top the ranking of the nation's largest student housing facility architecture and architecture/engineering (AE) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
