Rising Demand and Tight Supply: The 14 Universities Leading Student Housing Success

With student housing performance cycles fluctuating drastically since 2020, a handful of universities across the U.S. have stood out as top performers in pre-leasing and rent growth. According to recent data from RealPage, these 14 institutions report near-total occupancy each August, and their rent growth consistently exceeds national averages. Factors driving this high demand include rapidly growing local populations, flagship university status, and limited "shadow markets" of nearby conventional apartments, which funnel demand toward purpose-built student housing.

These standout universities illustrate a shift in the student housing landscape, as rising enrollment rates at major universities underscore the value of tailored, purpose-built accommodations over generalized apartment options. The effects ripple through student housing providers, investors, and local communities alike.

Flagship Universities in Growing States

Among the top-performing schools are several large, state-affiliated institutions that are anchors in their communities. The standout performers often reside in states experiencing notable population growth, such as North Carolina, Utah, South Carolina, and Georgia. This geographic trend suggests that larger population shifts are contributing to demand surges in student housing as people flock to these regions for job opportunities, more affordable living, and better quality of life.

For example, Appalachian State University in Boone, North Carolina, and Clemson University in South Carolina are each located in fast-growing states and are seeing consistently high enrollment numbers, which in turn push demand for student housing higher each year. In Utah, Brigham Young University (BYU) and Utah State University (USU) each boast high pre-leasing rates, benefitting from strong enrollment growth even as other parts of the country experience declines. This growth can be attributed to their strong academic programs and appealing campus environments, which draw students both locally and from across the U.S.

The Power of Limited Shadow Markets

Another common factor for these top-performing universities is their relatively low levels of "shadow market" competition. In markets like college towns, shadow market competition includes any conventional apartment options within a few miles of campus that are affordable enough to compete with purpose-built student housing. While the presence of shadow markets can lower rents and fill rates for purpose-built housing, these top-performing universities face minimal competition from non-student-specific housing options.

Colleges in quintessential college towns like Virginia Tech in Blacksburg, University of Notre Dame in Indiana, and University of Tennessee in Knoxville benefit from limited shadow market competition due to their locations. These universities anchor their towns economically, and there is little development of new apartment complexes that can house students at comparable rates. This limited competition channels demand directly to purpose-built housing providers, which can charge a premium, knowing the student population has fewer housing alternatives.

Enrollment Growth Bucking National Trends

Despite national trends of softening enrollment numbers, most of these top-performing universities maintain strong and even growing student bodies. Schools like Purdue University in Indiana and University of Georgia in Athens have managed to not only maintain but increase their enrollment numbers, which has led to intense demand for student housing. A primary reason for their appeal is the high quality of education and job placement rates, making these universities attractive to prospective students despite the broader trend of enrollment declines.

For instance, Kent State University in Ohio and University of Pittsburgh in Pennsylvania have increased their appeal by offering specialized programs and establishing connections with industry leaders, which assures students that they’ll have employment opportunities upon graduation. Similarly, University of North Carolina in Chapel Hill has grown in prominence with its emphasis on research and professional development opportunities, fueling continuous enrollment gains that keep demand for student housing robust.

Higher Rents and Strong Occupancy

Between Fall 2020 and Fall 2024, these 14 schools have exceeded national averages in rent growth for student housing, a trend reflective of their demand stability and high occupancy rates. Pre-leasing rates at these institutions typically approach 100% by August each year, suggesting students are highly motivated to secure housing well in advance. With a limited number of options, students find themselves competing for available space, which allows student housing providers to maintain high occupancy rates and increase rents at a healthy pace.

At University of Oklahoma in Norman and University of Pittsburgh, landlords have capitalized on rising demand with steady rent increases. Students, willing to pay a premium for proximity to campus and specialized amenities, have driven purpose-built housing rents upward, further proving the strength of demand.

Investment Potential and Future Prospects

The unique success of these top-performing universities presents intriguing opportunities for investors in student housing. Given their high occupancy rates, limited competition from shadow markets, and stable (or growing) enrollments, properties near these schools have a reliable income stream and greater rent growth potential than less competitive areas. These factors make them prime targets for long-term investments in purpose-built student housing, with lower risks of turnover or vacancy.

Additionally, rising interest in college towns suggests that student housing is increasingly viewed as a stable sector within multifamily real estate, even amid economic uncertainty. Investors looking to diversify their portfolios may find these high-performing markets ideal, as they often demonstrate resilience and predictability despite fluctuating broader market trends.

A Bright Outlook for Student Housing in Key Markets

The universities that have consistently outperformed in student housing leasing and rent growth highlight key trends shaping the market today. Their successes are driven by robust demand from growing enrollments, a favorable position within fast-growing states, and minimal shadow market competition. These 14 schools underscore the strength of purpose-built student housing in select regions and its appeal as an investment asset, even as the real estate market shifts in other sectors.

As we look ahead, the combination of increasing demand and limited supply in these college towns suggests that student housing near these top-performing universities will remain a hot market for investors. For students, the high demand will likely keep rents elevated, reinforcing the importance of early pre-leasing and forward planning. For investors, the outlook remains bright, as the top-performing student housing markets continue to demonstrate impressive resilience and potential for growth.