Despite economic headwinds and a cautious investment landscape, student housing continues to demonstrate remarkable resilience in 2025. Driven by stable enrollment trends, undersupplied markets, and a growing need for quality purpose-built accommodations, this asset class is increasingly attracting the attention of institutional and private investors alike.
Strong Preleasing and Occupancy Fundamentals One of the most notable indicators of resilience in student housing is preleasing performance. As of June 2025, many well-positioned markets are seeing preleasing rates exceeding 90%, with some like Statesboro, GA and Ames, IA achieving figures above 95%. These numbers reflect not only strong student demand but also strategic pricing and operational discipline by experienced operators.
For example, Centurion Property Group’s portfolio includes assets such as The Grindstone in Columbia, MO (serving the University of Missouri), which is 100% preleased for the 2025-2026 academic year, boasting a 10.20% rent growth year-over-year. Similarly, The Rocks in East Lansing, MI (serving Michigan State University) reached full occupancy with an 8.50% rental increase.
Rising Enrollment & Constrained Supply While other sectors experience volatility due to macroeconomic trends, student housing benefits from the relative predictability of university enrollment. Key markets like Iowa State University and Georgia Southern University have reported enrollment growth in 2024-2025 of 1.85% and 5.36%, respectively. This growth fuels consistent demand for housing, especially in locations where on-campus supply is limited or aging.
Moreover, the development pipeline remains constrained. Rising construction costs, zoning limitations, and economic uncertainty have slowed new deliveries, helping to balance demand and supply. This is particularly evident in Ames, IA, where no new beds are scheduled for delivery in 2025, further supporting rent growth and absorption.
Operational Strength & Investor Confidence Experienced operators have adapted well to the evolving student housing landscape, incorporating technology, streamlined leasing practices, and tenant experience improvements. These efforts contribute to retention and NOI stability, even during periods of broader market uncertainty.
Investor sentiment also remains strong. Recent equity offerings by sponsors like Centurion Property Group have seen high investor interest, signaling continued confidence in the sector’s fundamentals and long-term potential.
Conclusion Student housing’s durability in 2025 is grounded in demographic demand, operational discipline, and limited new supply. As universities continue to attract students and the need for modern, off-campus accommodations grows, the sector remains well-positioned for stable, risk-adjusted returns. For investors seeking resilient, recession-resistant opportunities, student housing continues to earn its place in a diversified portfolio.
