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Student Housing Preleasing, Rent Growth Slow in April, Yardi Matrix Reports

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The 2024-2025 leasing season continues to be one of the best yet

SANTA BARBARA, Calif., May 10, 2024 (PRNewswire) Preleasing at Yardi 200 schools reached 73.5 percent in April, exceeding last year’s rate by 50 basis points, while rent growth stood at 5.5 percent, according to the latest Yardi® Matrix National Student Housing Report. 

As of April, the average rent reached $895 per bedroom, unchanged from the previous month and 5.5 percent higher year-over-year. Similar to the preleasing rate’s evolution, rent growth has slowed from the beginning of the leasing season, but is still above the average growth rate of 3.5 percent.

Rent growth slowed from 6.8 percent early on in the leasing season and has averaged six percent throughout the leasing season to date.

A total of 35 U.S. markets saw double digit rent growth, while 23 posted rent declines. State schools across the Sun Belt with growing enrollments have seen the biggest jumps in rents.

Preleasing has lately been trending in line with last year. A total of 19 schools were at least 90 percent preleased as of April, including Ole Miss (100 percent), Kentucky (93.3 percent), Purdue (93 percent) and James Madison (92.5 percent). But 22 universities didn’t reach a 50 percent preleasing rate, such as UT–Arlington and Georgia State.

“Strong rent growth is indicative of solid demand for product and consolidation of higher education into the largest student housing markets, as primary state schools have been able to outgrow their peers,” state Matrix analysts. 

Student housing investment has been on par with last year, with 18 properties changing hands year-to-date through April. The average price per bed stood at $100,857—well ahead of previous years.

Gain more insight on leasing, rents and investment in the new Yardi Matrix National Student Housing Report. 

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, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi

Multifamily Rents Up Slightly Last Month, with Regional Variance, Reports Yardi Matrix

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Average U.S. asking rent gained $1 in February, increasing for the first time since Fall 2023

Santa Barbara, CA – March 13, 2024 (PRNewswire) National asking rents posted their first increase in over seven months in February, according to the latest Yardi® Matrix National Multifamily Report.

The average U.S. asking rent rose $1 to $1,713 in February, up 0.6 percent year-over-year (YoY), while occupancy decreased 60 basis points YoY to 94.5 percent as of January.

Markets in the Northeast and Midwest continued to register rent increases, in contrast to rent contractions in high-supply Sun Belt markets. Of Yardi Matrix’s top 30 metros, 13 posted rent declines, and five were down by three percent or more YoY. Occupancy was positive only in San Francisco, up 0.1 percent.

While rents generally show signs of stability, factors including supply, demand, regional metrics and affordability will determine the market’s 2024 performance. Occupancy is likely to continue to decline, with one million new rental units expected to come online through the end of 2025. Already, heavy deliveries in Sun Belt and Southwest metros have eroded rent growth, with more construction underway.

“While high-demand markets are likely to record weak rent growth over the next year or two, the seeds of a rebound have been planted, as starts are declining and deliveries will drop in 2026 and 2027,” states the report.

Single-family rents declined $2 in February to $2,133, equating to a 1.2 percent year-over-year increase. Single family occupancy remained flat at 96.5 percent in January. High mortgage rates and the scarcity of for-sale assets continue to boost demand.

Gain more insight in the new Yardi Matrix National Multifamily Report.

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, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi

U.S. Multifamily Market Faces Challenges Ahead, According to New Yardi Matrix Outlook

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Rents expected to taper off as influx of new supply anticipated in 2024

Santa Barbara, CA – Dec. 20, 2023 (PRNewswire) After two years of stellar growth, rents decelerated in 2023, despite demand still at strong levels thanks to a resilient economy. The 2024 Multifamily Outlook from Yardi® Matrix anticipates a year of challenges, including slowing national rent growth.

National rent growth moderated to 0.4 percent year-over-year through November 2023, from a combined 23.5 percent in 2021 and 2022. Absorption stabilized at 300,000 apartment units in 2023, compared to 600,000 in 2021 and 200,000 in 2022.

Yardi Matrix expects that rent growth and occupancy will be heavily tested next year. Of the 1.2 million apartment units under construction at the start of 2024, 510,000 are expected to be delivered by the end of the year, the highest number in decades.

“We expect demand for multifamily to remain healthy in 2024, but headwinds that include slower job growth, increasing supply and waning affordability in some markets will keep rent growth restrained again,” state analysts, forecasting a tepid 1.5 percent rent growth nationally.

The 2024 forecast calls for Midwest metros to lead rent growth, and the Sunbelt and West markets to continue to experience in-migration from the coasts both by residents and businesses. Sunbelt markets such as Austin, Nashville, Charlotte and Orlando are already seeing stalling rent growth, and despite robust population and job growth, they boast high levels of new supply, which will further suppress rents.

On the investment front, already down by 70 percent year-over-year, multifamily sales will likely remain sluggish in 2024, due to the impact of interest rates and pricing uncertainty.

Gain more insights in the latest U.S. Multifamily Outlook from Yardi Matrix.

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, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

SOURCE Yardi