As students head back to school, pre-leasing rates for student housing have risen to 89.1% in July, up from 88.1% a year earlier, although still below August 2025 levels. This growth indicates a strong demand for student housing, particularly in certain markets.
However, Tyson Huebner from Yardi Matrix warns that the performance of student housing is becoming increasingly polarized, with new supply concentrated in larger markets, which negatively affects schools with higher bed counts. Mike Gordon, global chief investment officer at Harrison Street Asset Management, emphasizes the importance of specialization in navigating these diverse market conditions.
He notes that while overall conviction in student housing remains high, the outlook varies significantly by market due to factors like funding cuts and enrollment trends. Some universities, particularly those in the Power Four athletic conferences, are seeing strong demand and occupancy rates above 95%, while others struggle with supply lagging behind enrollment growth.
Harrison Street, a major player in the sector with over $24 billion invested, is actively acquiring and developing properties, as well as divesting assets in high-demand markets, exemplified by their recent $910 million sale of a 12-property portfolio.
This dynamic landscape suggests that investors must carefully assess individual university markets to capitalize on opportunities in student housing