After a year of ups and downs, student housing operators wrapped the Fall 2021 leasing season strong in terms of pricing.
Student housing rents ended the leasing season up 2.3% from the previous August, the best year-end rent growth since 2016 when rent growth hit 2.6%. This year’s strong rate also stands in contrast to 2020’s lackluster year-end rent performance of 1.2%.
It’s hard to image how Fall 2021’s rent performance could be any more encouraging after a year of uncertainty caused by the global pandemic. Fall 2021 annual rent change is the second-best of the last decade.
The nation’s average effective asking rent sits at $725 as of August.
Rent change by school usually varies greatly, but even those metrics impressed this year. A quarter of the RealPage 175 universities recorded rent growth at or above 4% in Fall 2021, compared to just 16% of schools a year earlier. Alternatively, the percentage schools that recorded rent cuts in 2021 was far lower than that same percentage in 2020.
That 25% of the schools that surpassed 4% rent change for Fall 2021 was great by even a normal year’s standards. About 31% of schools had rent growth in the range of 2% to 4% in Fall 2021, compared to 17% in Fall 2020.
In total, more than 56% of the RealPage 175 achieved better than 2% rent growth in Fall 2021. That was almost double the Fall 2020 figure.
To learn more about the data behind this article and what RealPage has to offer, visit https://www.realpage.com/.
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