US: Student housing transactions in the United States rose 43 per cent year-on-year in 2024 to reach $8.5 billion (£6.8 billion), according to Walker & Dunlop’s 2025 Student Housing Outlook report, as the sector continues to attract institutional capital amid rising university enrolment and limited supply.
The report highlights a broader market shift from amenity-heavy developments to more functional, academically supportive accommodation.
High-growth flagship universities in the Southeastern Conference (SEC) and Big Ten are now among the most active markets for both investors and developers.
Will Baker, senior managing director of student housing at Walker & Dunlop said: “While high-end features still play a role, today’s students and their families are more focused on value, convenience, and a sense of community.
“This evolution reflects a larger industry trend: a shift away from lavish, attention-grabbing perks toward thoughtful, student-first design that enhances academic success and quality of life.”
Despite economic pressures and a decline in transactions in 2023, the sector rebounded strongly last year. The report attributes the rebound to stabilising interest rates, continued enrolment growth, and an increase in loan maturities.
The report also notes that single asset and portfolio trades of stabilised student housing are gaining ground, supported by rising occupancy rates and above-average rent growth. In parallel, development activity remains limited due to equity and financing challenges, which is expected to maintain upward pressure on rents.
Christopher Epp, managing director at Walker & Dunlop investment sales said: “Transaction volume rebounded to $8.5 billion (£6.8 billion) in 2024, driven by rising enrolment, resilient operations, and attractive yields. With continued momentum and a concentration of activity in high-growth Southeastern markets, we expect student housing to outperform other asset classes moving forward.”
Walker & Dunlop, which ranked as Fannie Mae’s top student housing lender in 2024, also reported a total of $13.1 billion (£10.5 billion) in financing volume and $10.2 billion (£8.2 billion) in student housing sales to date.
Highlights:
- Student housing transactions in the US rose 43 per cent to $8.5bn (£6.8 billion) in 2024
- Demand shifting toward value-led, academically supportive accommodation
- Southeastern and Big Ten university markets lead 2025 investment activity
