Student Housing 2025: Solid Occupancy, Softer Pricing — What Operators Should Do Next
Aug 25, 2025
This article was inspired by the Yardi Matrix National Student Housing Report (August 2025). Across 200 tracked universities, the report shows preleasing near 90%, rent growth at a four‑year low, and a widening gap between “sold‑out” campuses and markets still needing to discount to fill the last beds. We’ve distilled the most relevant takeaways for student‑housing owners, operators, and investors.
1) Occupancy Is Set for Another Tight Fall
Preleasing for the Yardi 200 reached 89.9% in July, running 170 bps ahead of July 2024 and 120 bps below July 2022—implying ~94–95% fall occupancy. 2025 is tracking ahead of last year but below 2022’s peak, with stronger momentum at schools that have enrollment growth and little new supply.
Takeaway: Expect full houses at many campuses—but the ease of getting to “full” is increasingly dependent on local supply pipelines.
2) Rent Growth Has Hit the Brakes
Advertised rent growth decelerated to 0.9% YoY in July 2025—its lowest since March 2021—with average rent at $905/bed, down from the $918 March peak. Season‑to‑date rent growth (Oct–Jul) averaged 2.8%, well below 5.7% last season and 6.9% the season before.
Takeaway: Pricing power for the “last mile” is limited. Operators should favor speed to 95%+ over chasing incremental rate on remaining beds.
3) A Split‑Screen Market: Winners vs. Strugglers
More than 80 universities posted YoY rent declines in July (up from 73 in June and 34 a year ago), while eight schools still notched double‑digit gains. Among larger markets, Ole Miss (+20.8%), Mizzou (+10.6%), and Kansas (+10.2%) led growth; Virginia Tech (+9.6%), Auburn (+9.3%), Illinois (+7.3%), James Madison (+6.9%), and Florida (+6.8%) also advanced.
Takeaway: Asset strategy must be campus‑specific. Treat “student housing” as many micro‑markets—not one.
4) Supply (and the Shadow Market) Are Repricing Beds
Rent declines cluster where new beds are delivering or where conventional multifamily lease‑ups compete head‑to‑head. Tennessee rents fell 10.3% with 3,900 beds underway; declines also hit Georgia State (-10.2%), Arizona State (-10.0%), USC (-6.5%), and Cal‑Berkeley (-5.8%). Even without new student deliveries, VCU, North Texas, Northern Arizona, Baylor, and Arizona saw >5% drops—older, farther‑from‑campus assets were most exposed.
Takeaway: In construction‑heavy or big‑metro markets, lead with value and proximity. Tighten concessions, elevate service, and segment pricing by distance/finish to protect absorption.
5) Who’s Sold Out—and Who’s Still Selling
Fifteen markets are effectively 100% full for 2025–26. Larger standouts include Ole Miss (100%), Middle Tennessee (100%), UC–Santa Barbara (100%), and Mizzou/Virginia Tech/Kentucky (~99.6%). On the other side, 32 schools were below 80% in July—e.g., UT–Arlington (62.5%), Temple (69.1%), Minnesota (75.9%), Sam Houston (77.0%), Georgia Tech (79.6%)—though many are gaining MoM. 59 markets are 10%+ ahead of last year, and 51 are already above their September 2024 occupancy (e.g., Cincinnati, Drexel/UPenn, Wichita State, Washington State, ASU).
Takeaway: If you’re under 80% in August, prioritize speed: real‑time pricing, daily call‑downs, short‑term promos tied to tour‑to‑lease conversion, and partnerships with campus orgs to unlock demand.
6) Demand Drivers Are Shifting—Favoring Big State Schools
Universities expect lower international enrollment this fall, but the sector benefits from a national peak in high‑school grads in 2025 and from consolidation among smaller institutions—demand that is tilting toward larger primary state schools.
Takeaway: If you operate at big public flagships, plan for durable demand (even with flatter rents). If you’re at smaller schools, retention programming and differentiated value will matter more.
7) Capital Markets: Fewer Trades, Higher Values per Bed
50 properties have sold YTD—fewer than the prior two years—but more beds have traded, and average price/bed is ~$94,000, well above the $73,500 2020–2024 average. Since January 2020, average rent/bed is up 23%, helping support valuations.
Takeaway: Even with softer rent prints, long‑run rent gains and constrained future deliveries can underpin values. For operators, clean T‑12s and well‑documented preleasing thesis will matter if you go to market.
Operator Cheat Sheet (Next 60 Days)
Price to fill, not to thrill: Hit occupancy targets first; then protect renewal rent next cycle.
Segment your stack: Premium for walk‑to‑campus and renovated product; targeted incentives for older, farther assets.
Watch the shadow market: Track concessions at nearby Class‑A conventional lease‑ups and adjust quickly.
Lean into momentum markets: Where preleasing is ahead YoY, tighten concession windows and push renewals early.
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At Percy, we help multifamily owners and operators—including student housing—build the teams that execute: leasing specialists for the last mile, maintenance techs for turn season, and community leaders who protect reputation and renewals. If you’re planning your next move, let’s talk about how we can help you staff for peak performance.
Source: Yardi Matrix – National Student Housing Report, August 2025.