For off-campus purpose-built student housing, each market has demand drivers that can affect supply performance in varying ways. Leasing is tied to the academic calendar, so changes in supply and demand have immediate impacts that can drastically alter the market from one leasing year to another.
Every few years, at the beginning of the leasing cycle, some markets are expected to perform exceptionally well, and others are anticipated to become a challenge.
The last few leasing cycles for off-campus purpose-built student housing have been historic. Outsized rent growth, historically low levels of new supply, and faster-than-anticipated leasing velocity have perpetuated the last 36 months and counting. Below are five examples of markets that have overperformed. Read on to discover which markets made the list and find out why they’re standing out.
Overperforming Markets
Louisville, KY – University of Louisville
Louisville has seen a resurgence of demand in the last two years and has rebounded substantially from a few years of challenges in the market post-COVID. Enrollment at the University of Louisville has seen steady increases, and the market hasn’t had a new delivery in almost three years. Currently, market rent growth is close to 3%, occupancy is up 2.6% year-over-year at 91.1%, and pre-leasing is up 15.1% year-over-year, sitting at 81.1% as of May 16, 2025. There are no purpose-built projects in the immediate pipeline, reinforcing the strength of the existing inventory.
Statesboro, GA – Georgia Southern University
Statesboro has consistently demonstrated strong fundamentals over the last three leasing cycles and just welcomed its first new development in several years (Charm at GSU). With an average rate per bed of $680, among the lowest in the country, new supply has been limited due to rising development costs. Occupancy is currently at 92.6%, up 3% year-over-year, and pre-leasing is ahead by 10.7% year-over-year, reaching 87.5% as of May 16, 2025. Affordability plays a key role, with roughly 90% of students being in-state and tuition rates 74% below the national average.
Oxford, MS – University of Mississippi (Ole Miss)
Oxford has posted strong fundamentals for the last two leasing cycles, with rent growth, occupancy, and pre-leasing all surpassing previous metrics. Pre-leasing velocity stands at 98.6%, which is 6% ahead of last year at the same time. This performance appears to be driven by an enrollment boom, currently being met with an undersupply of beds. As long as enrollment trends continue, Oxford is well-positioned to sustain strong supply and demand fundamentals, especially with a growing pipeline of purpose-built inventory.
Columbia, MO – University of Missouri
Columbia remains a high-performing market, maintaining strong fundamentals over the past three leasing cycles. Occupancy is currently 97%, and pre-leasing is 3.3% ahead of last year, averaging 88% as of May 16, 2025. Rate growth is around 13%, and the market average rate per bed sits at $759. High development costs have made new off-campus projects less viable, resulting in a stagnant supply pipeline and positioning existing inventory to continue performing well.
Harrisonburg, VA – James Madison University
Harrisonburg continues to be one of the strongest student housing markets from a fundamentals standpoint. Occupancy has consistently remained around 98% for over three years, and JMU has shown steady enrollment growth. With an average market rent of $687 per bed, the development of new supply is challenging. Affordability is a major advantage, as approximately 75% of students are in-state and pay tuition that is more than 60% lower than the national average.
Conclusion
Understanding the nuances of each market is a defining characteristic of the off-campus purpose-built student housing sector. Having a clear view of supply and demand, accessing historical performance, and being proactive instead of reactive to trends is necessary to successfully navigate student markets. College House continues to be a vital resource for all to help develop that understanding and allow all to make more informed decisions.