Across the core 175 universities tracked by RealPage, annual effective rent growth in purpose-built student housing has hit record highs over the last year. As of September – the final month of the Fall 2023 pre-lease season – annual effective rent growth hit 9%, according to RealPage Market Analytics. At some schools, however, that rate was considerably higher. Arizona State University claimed the top spot in the nation for student housing rent growth in the year-ending September 2023, posting an incredible 24.5% increase. Rent growth at Arkansas and New Mexico nearly hit 20%. Several quintessential college towns appear on this list, such as Asheville (UNC), West Lafayette (Purdue) and Knoxville (Tennessee), which helps underscore a storyline we’ve been following for a while now that college towns can be very attractive student housing markets. Still, don’t expect to see these prolific rates next year. Much like the conventional market correcting sharply over the last year, RealPage expects student housing rent growth to cool in the Fall 2024 pre-lease season.
