Student Housing Gets Good Marks for Leases Signed for Fall 2023
Current lease numbers are at 75% but could hit 90% with time still to go before students arrive next month.
The early bird gets the worm or the bed in the case of student housing. At the core 175 universities tracked by RealPage Market Analytics, 85.7% of beds—how units are measured in the purpose-built student housing category—have been leased already for the fall 2023 school year.
That’s a bit below the June 2022 record of 86. %, but higher than the pre-COVID-19 June reading of 75%. The purpose-built student housing (PBSH) category includes buildings that are off but near campuses and typically lived in by students after their freshman year.
Since there’s still time before students descend on campuses nationwide–usually next month in August, numbers may climb higher, even to a healthy 90%, the report said. In 2022, the final pre-lease rate hit 95.7%, the highest reading on record.
Numbers vary at campuses, with some pre-leasing earlier than others and more fully occupied. About 13 of the schools tracked are fully leased as of last month in June, including Purdue, University of Tennessee, Texas Christian University, Appalachian State, College of Charleston, University of Delaware, Oregon State, University of Arkansas, Florida Gulf Coast, University of North Carolina, University of Cincinnati, Eastern Michigan and North Carolina State.
What attracts students to a particular building? Many factors, as with conventional multifamily housing, from the amenities within and outside to the prices, where their friends live and also the location. Those properties within a half mile of a campus, the report said, are more leased than their farther-away counterparts. As of last month, properties within a half mile of a school were 87% taken, versus the lowest reading of 81.6% at properties within a half mile to one mile from the campus. In certain instances, the farther distance may appeal more since it may come with a lower cost per bed.
Of note is that student housing is now outperforming conventional multifamily housing for the first time in a non-contractionary period, according to more data from RealPage Market Analytics, and reported in an earlier GlobeSt.com report.