The Schools with the Largest Rent Growth in 2019
Digested from RealPage
The schools that have performed well this year have not seen a lot of new supply, with one exception.
Student housing rent rose 1.7 percent as of June, which was consistent with 2018’s level of 1.6 percent, according to Real Page’s Julia Bunch.
Bowling Green State University in Bowling Green, Ohio claimed the top spot this year, with 7.5-percent rent growth. Following Bowling Green were Brigham Young University (7.5 percent rent growth), University of Nevada – Reno (7.0), Virginia Tech (6.2) and Minnesota State University – Mankato (6.2).
“Like Bowling Green State, most of the schools on this list have seen little to no new supply of late, allowing existing properties to push rents,” Bunch wrote. “One outlier for this trend is the University of Nevada – Reno, which has experienced particularly robust performance as well as lots of new supply. By the time school starts in the fall, just under 2,000 beds are expected to have been delivered, but that’s nothing a school with healthy enrollment growth can’t handle.”
Supply also told the story for the schools that have not performed as well in 2019. “Alternatively, most of the schools placing among the rent change laggards have generally seen – and struggled to absorb – large amounts of new supply,” Bunch wrote. “The list of universities seeing rent cuts includes schools suffering that supply hangover: University of Mississippi, Texas A&M University and Louisiana State University. Pre-leasing laggards include schools struggling with enrollment challenges, like Louisiana State University and the University of Missouri.”