Rent Growth, Leasing Rates up in Student Housing Market
Digested from Student Housing Research: Market Gains Strength
Axiometrics Inc. (4/15/16) Gunn, Taylor
March was a good performance month for national student housing, reports apartment and student housing research and analysis firm Axiometrics. Leasing velocity has surpassed last years figures, student housing bed counts remain stable, and annual effective rent growth continues to improve.
After hovering at around 2 percent over the past leasing year, student housing effective rent levels shot up to 2.4 percent in March, amounting to about $617 per bed for the upcoming fall semester. New off-campus bed counts dropped slightly by comparison, from 48,000 in 2015 to 45,000 in 2016, yet Axiometrics still sees this as an indicator of strong performance in the student housing market.
Compared with March 2015s leasing rate, 55.5 percent, this years leasing velocity numbers for purpose-built, privately owned properties jumped ahead by 462 basis points this year, meaning that just under two-thirds of these properties had been leased as of March 2016.