A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
Consumers are increasingly concerned about the state of the economy, and that is impacting yet another real estate sector – student housing.
Rent growth in the sector slowed to just 0.9% in July across 200 schools surveyed by Yardi. The average advertised asking rent fell to $905 per bed, a 1.4% decrease from the $918 peak in March “as operators struggle to lease remaining inventory,” according to the Yardi report.
For perspective, from October through July, rent growth averaged 2.8%, less than half the 5.7% recorded during the same period a year earlier and well below the 6.9% seen a year before that.
“What we’re seeing is fall-off at the top and the bottom,” said Robert Bronstein, founder and CEO of Scion, one of the country’s largest owners and operators of student housing.
