Preleasing for the fall 2021 college term is still lagging prior years, but Yardi Matrix analysts expect performance will improve over the summer, with most colleges and universities planning to return to in-person instruction beginning in August and September.
As of April, preleasing was at 58.6% for surveyed schools, about 4.2% below the same time last year and 5.8% below 2019, according to the latest Yardi Matrix Student Housing report. The Yardi Student Housing data set includes over 1,000 universities and colleges nationwide, including the top investment-grade universities across all major collegiate conferences, known as the Yardi 200.
Released quarterly, Yardi Matrix Student Housing covers key metrics including pre-lease occupancy, rent by bedroom and by unit, transaction activity, the new supply pipeline, the shadow market, ownership and property management contact information, university profiles and more.
“Many factors are pointing to increased student housing demand, fueled by students who took a gap year now enrolling in four-year institutions, new high school graduates, and the gradual return of international students,” said the report. “As the industry begins to approach a sense of pre-pandemic normalcy, a potential headwind to watch will be localized supply-demand imbalances.”
Year-over-year rents for dedicated off-campus student housing properties dipped earlier this year but have now begun to rebound. Rent growth for the Yardi 200 was 1.2% year-over-year as of April, up from 0.6% year-over-year in March.
“We expect rents will remain fairly stable or increase modestly, as demand for student housing properties accelerates through the summer,” the report said.
