Manya Rathore
Research expert covering India
U.S. student housing - statistics & facts
Every year, millions of young adults in the U.S. leave their parents' homes to start their new life as college students, and they all need housing. Many of these students will choose on- or off-campus student halls that offer the opportunity to mingle and form communities with their peers in ways traditional housing does not allow. That makes purpose-built student accommodation (PBSA) a popular asset class among investors. In 2025, the sector attracted over ten billion U.S. dollars worth of investments. With supply in the private rental housing market tightening and rents soaring, demand for student housing is poised to remain strong.
A supply gap that keeps widening
The average occupancy rate for off-campus accommodation has remained elevated since before the COVID-19 pandemic, with 2022 experiencing a record-high share of occupied units. The gap between supply and demand is particularly stark at some of the largest institutions. Florida International University, which has one of the highest enrollments in the country, faces a shortage of over 46,000 beds across on-campus, off-campus purpose-built, and off-campus student-competitive properties. To help close that gap, the leading student housing developer, Landmark Properties, had roughly 73,000 beds planned for delivery through 2029.
Rents vary widely by campus
The average rent depends on multiple factors, such as the city, distance from campus, and type of apartment. Among the 30 largest universities by enrollment, the average monthly rent in off-campus purpose-built student housing ranged from under 800 U.S. dollars to nearly 2,450 U.S. dollars in 2025. Properties closest to campus tend to command a premium; as of fall 2025, units within half a mile of campus averaged over 1,150 U.S. dollars per month. Rents in the private rental market have been generally on the rise, but since the COVID-19 pandemic, rental growth has accelerated. Student housing is no exception, with year-on-year rent growth exceeding eight percent in 2023.
Student housing is a cornerstone of student life for any college or university. As students are often not fully employed, access to affordable housing built to suit their lifestyle is crucial. With enrollment going strong and the construction pipeline concentrated in a handful of regions, the gap between supply and demand is likely to shape investment activity for years to come.
