What Experts Expect for Student Housing in 2023

Specialists weigh in on what this year holds for this dynamic sector, in the third installment of our outlook series.

The student housing sector continued to prove its resiliency in 2022 as more students returned to campuses and resumed face-to-face classes following the health crisis. Rent growth remained robust, with 96.6 percent of beds at Yardi 200 academic institutions preleased as of September, according to the data provider’s latest research report.

Despite the high interest rate environment and increasing inflation taking their toll on the housing market, transaction activity in the student housing space also stayed elevated, while the pipeline for new supply continued to be strong. More than 31,000 bedrooms were under construction as of October at the top 10 U.S. universities for largest under-construction pipelines. The University of Texas in Austin led the way with 4,726 units, Yardi Matrix shows.

Some of the major players in the market had a strong year in 2022, closing large deals and forming strategic partnerships to grow their student housing footprint. Landmark Properties teamed up with Abu Dhabi Investment Authority twice last year. First in March, when they decided to acquire and operate value-add student housing properties through a $1 billion platform, then in August when they joined forces again for a $2 billion build-to-core student-dedicated platform. Meanwhile, Blackstone added 166 new properties across 71 U.S. markets after buying American Campus Communities for $12.8 billion.

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