Pre-releasing Rates For The Student Housing Sector at A Record High - States Report

In recent student housing news, the Yardi Matrix National Student Housing Report revealed that the student housing sector leasing had a definite boosted start with the beginning of 2024-25. The housing rates for students also climbed steadily, jumping from last year with a year-on-year growth rate of 4.9%, with the average asking price for a student bed in December last year being $858 per bed.

The student housing sector is off to a record start as pre-releasing of student beds has recently begun for the 2024-25 academic session. The rate for pre-releasing stood at 47.3% in December, a 9% increase from the previous year. The astronomically high pre-releasing rates also indicate a high renewal rate, as 51 markets boasted a 50% rate in December and ten schools in the United States already standing at a 75% prereleasing rate in the same time frame. While pre-releasing rates grew, rent growth did slow a bit, left at a standstill of 4.9%.
Yardi Matrix gathered intensive data from about 150 schools in the USA and displayed a rebound in enrollment in the current academic year, 2024-25. Enrolment rates rose by 1.4%, more than triple the growth recorded in the fall of 2022 in this recent student housing news.
“Many of the markets with the fastest preleasing are seeing the strongest rent growth as operators take advantage of the surge in demand. Twenty-seven schools with over 10% rent growth in December are, on average, 5% ahead of preleasing last year," the report states.
The student housing sector is in line with the current trends noticed in the real estate sector as housing rates and interest rates continued to grow, advertently impacting sales. Preliminary data from Yardi Matrix revealed that only 73 student housing properties changed hands last year, compared to the average of 205 properties sold in 2021 and 2022.

This student housing news comes as a reminder that the sector is ever-changing and growing with every stride each year. Stay tuned for more insightful news articles on the current industry trends, and list with us at amber!