Estimated preleasing reached 73.2% in April, according to the latest Yardi Matrix national student housing market report.
Report highlights
- Preleasing at Yardi 200 reached 73.2% in April, up 140 basis points year-over-year
- Rent growth slowed to 2.0% year-over-year, with average rents per bed falling to $917—marking the first monthly decline since August 2024
- Development pipeline continues to contract, with 28,454 beds projected to be delivered for the fall 2025 school year’s start
- Investment activity remained steady, with 27 properties sold year-to-date through April at an average of $74,207 per bed
Preleasing holds steady pace
Preleasing activity across the Yardi 200 universities continued to show resilience, reaching 73.2% in April 2025. This marks a 140-basis-point improvement over April 2024 and matches the performance seen two years prior. Despite the headline strength, operators reported increased competition in lease-ups, with many having to lower rents or offer incentives to attract tenants.
A total of 21 universities were over 90% preleased in April, including high-demand markets such as Alabama (95.1%), Mizzou (94.7%) and Virginia Tech (94%). Conversely, 21 schools remained below the 50% threshold, particularly in smaller or tertiary markets like UT–Arlington and Houston.
Rents fall, growth slows
April marked the first month-over-month decline in average rent since August 2024, with per-bed pricing falling to $917. Annual rent growth decelerated to 2.0%, down from 2.6% in March and significantly below the 6.4% average seen in recent leasing cycles.
The softening rental environment is being driven by a combination of multifamily market pressures and localized oversupply. Markets such as Tennessee and Arizona State experienced rent declines exceeding 6% year-over-year, while a few strong performers like Mizzou and Michigan posted increases near or above 9%.
The development pipeline for student housing continues to shrink. Yardi Matrix projects 28,454 new beds to be delivered in time for the fall 2025 school year, a steep drop from 36,306 in 2024 and more than 44,000 beds in 2023.
Despite these challenges, student housing investment activity remains stable. Through April, 27 properties changed hands, with an average price of $74,207 per bed. This is a notable drop from 2024, when prices were inflated by several large portfolio transactions. Transaction volume typically increases later in the year as leasing stabilizes.
Read the full Yardi Matrix National Student Housing Market Report: May 2025.
Add Comment