Yardi’s student housing report for April 2025 suggests a market that is weaker than last year, with preleasing slowing and tepid rent growth, even though the pace of fall enrollment has been rapid.
“Enrollment has been boosted by strong demographics but is threatened by political factors likely to cause declines in foreign student enrollment and graduate enrollment during the current presidential term,” Yardi stated.
Preleasing for the Yardi 200 schools reached 67.1% in March, a figure Yardi said is likely to be lower when data revisions are completed. As it stands, it is below the 67.7% estimate projected a year ago, signifying an overall slowdown in preleasing activity, Yardi said.
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However, there were variations on the theme. In March, 34 universities were over 80% preleased, including 25 schools with four or more student housing properties. The markets that performed best were Virginia Tech, Alabama, Kentucky, Wisconsin, James Madison, and the University of Missouri. Preleasing was 10% ahead of last year at 45 schools, averaging 75.9% in March, perhaps due to enrollment growth.
On the other hand, 41 markets were less than 50% preleased and 23 universities were 10% or more behind the previous year’s pace.
Creating another challenge, the average advertised rent of $918 in March revealed that rent growth has slowed to 2.5% -- the third downward move of the year -- after beginning the leasing season at 4.6%. “This marks the lowest month for rent growth since July 2021,” the report noted. “Average rent per bed of $918 was still a record high for the sector as rents ticked up $1 in March, but the deceleration in growth [from an average of 6% in the 2023-2024 season] was notable.”
Again, the results were not uniform. At 17 universities, mostly in smaller student housing markets, rent growth reached 10% or higher, while 69 schools experienced rent declines, including in larger markets.
“Many fewer markets are seeing double-digit rent growth compared to the last two years,” Yardi noted. “Rent growth has been supported by new properties with higher rents, as same-store rent growth was 1.9% in March, and averaged 3.2% since October,”.
However, there has been a falloff in the supply of student housing. In 2024, 35,703 off-campus dedicated student housing beds were completed, compared to 44,746 beds delivered in 2023. Yardi predicts this downward trend will continue through 2026, noting that the new supply is concentrated at the top Power 5 universities.
At the same time, sales in 4Q 2024 were robust. During the year, 129 dedicated student housing properties were sold, 50 more than in 2023 and well above the pre-COVID average. The average price of a bed in 2024 shot up to over $101,000, matching the previous peak price set in 2020.
Athens, GA-based Landmark Properties is one company going full speed ahead in the student housing market. With $15 billion in assets under management, the company claims an active $10 billion development pipeline with over 50 student and multifamily projects under construction. It also aims to expand its presence in the UK and Europe.
Landmark started 2025 with a bang, announcing on January 2 plans to build The Mark Fort Collins, a 397-bed student housing community near Colorado State University at Fort Collins. Rooms will be far from basic student digs. “Apartments will be fully wired for high-speed internet and cable and feature in-unit laundry, large closets, synthetic hardwood-style floors in the living area, bedroom carpet, and bathroom tile flooring. Gourmet kitchens feature stainless steel appliances, quartz countertops, and ample cabinet space,” according to a company press release. A clubhouse, fitness center, resort-style outdoor pool, ski storage, pet spa, individual and group study areas, and rooftop courtyards with grilling stations will also be on hand.
In March, Landmark acquired a 1.56-acre site in Storrs, near the University of Connecticut, where it will build housing for 738 students, taking advantage of a record-breaking 2024 freshman class. The facility will include 7,000 square feet of retail space. And on April 1, Landmark announced the beginning of construction of a 678-bed student housing facility near Purdue University in Indiana.
“The ongoing resilience of the student housing sector continues to attract various institutional investors,” commented Wes Rogers, Landmark’s president and CEO. “Demand for quality student housing… continues to attract new partners while maintaining strong relationships across the institutional investment space.”
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