Student Housing Performance Remains Steady
Digested from RealPage
While nationwide rent growth was steady from 2018 to 2019, performance varied widely at individual schools.
Both rent growth and pre-leasing in student housing were consistent from 2018 to 2019, according to RealPage’s Julia Bunch.
“Nationwide, the August 2019 pre-leasing figures and average rent growth for the core 175 universities tracked by RealPage both stand within 10 basis points [bps] of 2018 rates,” Bunch wrote. “Among individual schools, however, the performance range is nearly 1,700 bps for rent growth and more than 3,000 bps for pre-leasing. Very few universities are near the national averages for either metric.”
Fall 2019 occupancy sits at 93.2 percent versus 93.3 percent the year before. But the overall numbers don’t tell the entire story. Schools seems to fall into one of two categories. Some, such as Boise State University and North Carolina A&T State University, report no vacancy. Others, such as University of Mississippi (69.7 percent), Valdosta State University (75.5 percent), Southern Illinois University Edwardsville (75.5 percent) and Western Kentucky University (78.3 percent), have vacancy below 80 percent.
“Of the schools with three or more off-campus properties, 66 schools – over 50 percent – report occupancy below 92 percent,” Bunch wrote. “No schools report occupancy between 92 percent and 94 percent, despite that range housing the national average. Another quarter of the schools, about 34 total, report occupancy above 98 percent.”