As the Fall 2023 term draws nearer, the latest Yardi Matrix student housing report indicates that the sector forged ahead with a solid performance through the second quarter of the year.
As of June, preleasing at Yardi 200 universities came close to 90 percent, up 5.2 percent from May and marking a 0.4 percent growth on a year-over-year basis. The average rent per bed reached another all-time high in mid-2023, marking the fifth consecutive month of annual rent growth that exceeded 7 percent.
Despite exceptionally strong preleasing and rent growth, current economic conditions have put a toll on the sector, with second-quarter transaction volume down by roughly 73 percent compared to the previous year. Still, development has not been hindered by ongoing headwinds, with the pipeline expanding by 28,000 beds since January.
As of June, 86.6 percent of bedrooms at Yardi 200 institutions were preleased for the upcoming school year. Six universities were fully leased, while an additional 14 schools were more than 95 percent leased. Ohio University, the University of Southern Mississippi and the University of Mississippi led the list of Yardi 200 institutions with the highest year-over-year rent growth, exceeding 20 percent.
Asking rents hit all-time high in June
Annual rent growth reached at 7.2 percent in June, while the average asking rent hit $846 per bedroom—marking an all-time high for Yardi 200 universities. Three schools exceeded a 20 percent annual rent growth in the first summer month, namely Purdue University, the University of Arkansas and Arizona State University-Tempe.
At the end of the second quarter, 153,000 bedrooms were in various stages of development at Yardi 200, marking a 28,000-bed increased since the start of the year. The under-construction stock increased by 22,000 new bedrooms through the first half of the year. According to Yardi Matrix, roughly 41,000 beds are slated for completion between 2023 and 2027.
Transaction volume of student housing properties across Yardi 200 reached merely $646 million year-to-date through June, down about 73 percent since the same period last year. The average sales price per bedroom averaged at $66,000, down by roughly $3,000 from the same period in 2022.
Head over to Yardi Matrix to read the full report.
