Pupil housing efficiency through the pre-leasing stage for subsequent fall’s semester has largely exceeded year-ago figures, because the Yardi 200 listing of markets is 25.2% leased, properly forward of final 12 months’s record-setting tempo of 10.4%.
Stable renewal exercise early has additionally led to six.6% hire progress in October 2023 in comparison with 4.7% in October 2022.
Fourteen universities within the Yardi 200 are over 40% preleased, in comparison with solely two faculties at the moment final 12 months. Lease progress in these markets averaged 10.8%. The College of Tennessee, the College of Wisconsin, and Clemson are 60% to 70% preleased as “properties there are making the most of their quick begin by pushing charges,” based on the report.
The report has 20 markets with a complete of 236 properties are over 20% forward of final 12 months’s lease-up tempo.
There are 11 universities with 63 properties that had been 10% or extra behind final 12 months’s lease-up tempo in October 2023.
One is Purdue College, among the finest markets final 12 months, which was 24.3% preleased, in comparison with 36.4% at the moment final 12 months.
“Most of those are smaller markets which have additionally been extra cautious pushing rental charges,” based on the report. Purdue, nonetheless, is seeing its rents up by practically 30%.
There are 37 markets within the Yardi 200 posting double-digit year-over-year progress, averaging 15.1% in October, and 34 markets displaying hire declines, principally dropping about 2.5% to 0%.
Funding exercise to date has fallen considerably from final 12 months, with solely 66 devoted scholar housing properties offered in comparison with greater than 200 at this level a 12 months in the past. Value per mattress can also be down, to $71,703 vs. $76,095 final 12 months.
Excessive rates of interest are the principle wrongdoer for the slowdown.
