Student Housing Records Record-Breaking Year, Yardi Matrix Reports

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Oct 24, 2022, 08:00 ET

The fall 2022 preleasing period ended in September with nearly 97 percent of bedrooms at Yardi 200 universities leased

SANTA BARBARA, Calif., Oct. 24, 2022 /PRNewswire/ -- The student housing industry continued to ride healthy demand and strong fundamentals to another record-breaking performance in Q3 and 2022 overall, according to the new quarterly National Student Housing Report from Yardi® Matrix.

The fall 2022 preleasing period ended in September with 96.6 percent of bedrooms at Yardi 200 universities leased. Annual rent growth was 4.1 percent as of September.

The pace of preleasing was faster for selective universities with higher enrollment. But positive performance was widespread among university types across the country. Twelve universities had double-digit growth in pre-leasing levels in September compared to 2021, with Washington State University (18.9 percent growth) and the University of Houston (16.4 percent) topping the list.

At some popular schools with growing enrollments, available student housing supply hasn't been sufficient to house the incoming class. A problem that used to be unique to California schools has now become more widespread.

"While student housing rent growth is starting to decelerate, there is still a significant spread between student housing and multifamily rents, which could support continued growth over the next couple of years," states the report. "The impact of multifamily rent trends on student housing will be stronger in university areas with a prominent shadow market, given the availability of options within a close radius."

Elevated investment activity continues despite rising interest rates, and the new-supply pipeline is robust. Learn more about the expectations for student housing by downloading the new report.

Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi