Student housing vacancy rates have surged this year as universities across the country shut down in-person classes to navigate the pandemic. According to a third quarter report from Moody's Analytics, vacancy increased to the highest levels since 2014. There was, however, a silver lining. Rents have increased by 1.3% to 1.8%.

Student housing vacancy has increased both by bed and by unit. By bed, the vacancy rate grew by 270 basis points from 5.2% to 7.9%, and vacancy by unit increased 120 basis points from 2.3% to 3.5%. These are the highest levels of vacancy since Moody's began tracking the sector in 2014.

Vacancy trends were very market specific. In the western region, vacancy per bed increased an astonishing 610 basis points to from 2.8% to 9.2%. By unit, vacancy grew by 320 basis points from 1.9% to 5.2%. The Midwest, on the other hand, saw much less dramatic increases, with vacancy per bed increasing by only 50 basis points and vacancy by unit up only 60 basis points.