December student housing preleasing for the 2024-2025 academic year set a new record at 47.3%, up 9% from a year ago, according to the latest Yardi Matrix National Student Housing Report. Asking rates also continued to climb, hitting $858 per bed in December and marking a 4.9 percent increase on a year-over-year basis.

The exceptional preleasing indicates a high renewal rate, according to Yardi Matrix, with 51 markets boasting a 50% rate in December and 10 schools already at least 75% preleased. Rent growth inched downward, falling from 6.4% earlier in the leasing cycle to 4.9% in December 2023.

“Many of the markets with the fastest preleasing are seeing the strongest rent growth as operators take advantage of the surge in demand,” according to the report. “Twenty-seven schools with over 10% rent growth in December are, on average, five percent ahead of preleasing last year.”

Conversely, student housing investment is in line with current trends across the real estate industry, as high interest rates continue to impact sales. According to preliminary data, just 73 student housing properties changed hands in 2023 across the Yardi 200, compared to an average of 205 properties sold in 2021 and 2022.

Pictured: James Madison University in Harrisonburg, VA, which saw the fastest year-over-year preleasing growth in the Yardi 200. Photo by Ben Schumin/Wikipedia.

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