The student housing market in 2024 is booming, with preleasing rates hitting an impressive 73.5% in April, surpassing last year’s record. This surge, combined with a robust average rent growth of 6%, underscores the market’s potential for high returns. As enrollment rates climb, are you ready to capitalize on this growth opportunity? Read on.
Student housing preleasing continued to match last year’s record pace, driven by strong enrollment trends and limited new supply. 
- Five schools have completed preleasing, while 34 markets boasted over 90% preleasing rates in May.
- The projected delivery of 45,495 new beds at Yardi 200 schools in 2024, an increase from the previous year’s 37,576 beds, suggests a response to anticipated enrollment growth.
31 universities are at least 10% ahead of last year’s preleasing pace.
Market Analysis
Primary Markets
Rent growth in primary markets has been robust, driven by strong demand and successful preleasing, as seen with the University of Tennessee’s 20.2% rent increase.
Secondary and Tertiary Markets
Secondary and tertiary markets have shown mixed performance, with some universities facing declines like UC-Berkeley and the University of Alabama-Birmingham saw rent declines of -6% and -2.7%.
The data indicates that developers should focus on investing in Primary Markets where strong demand and robust rent growth are evident while exercising caution in secondary and tertiary markets with mixed performance.
BASE4: Your Partner in Student Housing Development
Student housing presents a promising opportunity for developers to provide students with affordable housing, bridging a significant gap in the market, and BASE4 is here to help.
BASE4 plays a crucial role in the construction industry by providing innovative and efficient solutions for property developers and managers. We help developers, general contractors, and factories find better ways to build through innovative technology, forward-thinking design, and offsite manufacturing.
BASE4: The GO-TO Firm for Optimal Design
We know we are in volatile times, where supply chain issues…
Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
