Occupancy at U.S. universities was higher in September 2025 than in the previous two years, following a period of healthy preleasing, according to Yardi Matrix’s national student housing report for October. However, rent growth slowed and student housing sales declined.
Rents rose 0.8% in September, the slowest annual pace since 2017, to $905 per bed, 1.6% below the $920 rate reached in March as competition tightened during preleasing. Rents for the 2024-2025 leasing season also fell below prior levels, averaging $912 per bed and 2.5% annual growth, compared to 5.7% in 2024-2025 and 6.7% in 2022-2023.
Nationally, rent growth slipped in 11 of the 12 months of the 2024-2025 leasing season from 4.5% in October to 0.8% in September. Weaker growth was posted in 134 markets. Some formerly top-performing markets saw rent growth dip steeply, including Tennessee, Arizona State, Ohio State, North Texas and Clemson. In contrast, others performed better, including Mizzou, Nebraska, Louisville and Oklahoma State.
Even though overall occupancy rose to 95.1% in September, higher than in the previous two years, not all colleges benefited. Occupancy fell in 72 schools – in 22 by more than 5% -- and 32 failed to reach 90% occupancy, compared to 50 the previous year. This group included Sam Houston, Cal-Berkeley, Minnesota, Georgia Tech, East Carolina, UNC-Greensboro and Oregon.
However, occupancy rose by 5% or more in 46 other schools – including in some smaller university markets that underperformed in 2023-2024. In 49 markets, up from 38 the previous year, schools achieved 99% occupancy. This group included Oklahoma State, Ole Miss, LSU, Kansas, Wisconsin and Illinois.
Higher occupancy was reported in 112 markets, a majority and nine posted 100% occupancy.
New student beds are as follows. Nationally, some 27,000 were delivered in 2025, down from 35,000 the previous year. An additional 38,500 are under construction, with 26,500 due for delivery in 2026.
Fewer student housing sales were recorded in 2025. With fewer portfolio deals, 76 properties have been traded for an estimated $3.7 billion, compared to 74 sales and $5 billion recorded in 2024.
“The lack of institutional portfolio sales has pushed average pricing down to $98,000 per bed, compared to $107,000 last year. Even so, pricing remains well above pre-2024 averages, underscoring the sector’s continued strength and investor confidence,” the report said.
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