As Summer Arrives, Student Housing Outlook for Fall 2021 Improves
SANTA BARBARA, Calif., June 10, 2021 /PRNewswire/ -- 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 new 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.
"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 nternational students," states 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," states the report.
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.
Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email firstname.lastname@example.org, call (480) 663-1149 or visit yardimatrix.com to learn more.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.