Student Housing Demand and Slowing Construction Spark New Investment Cycle
Event summary
- Walker & Dunlop's 2026 Student Housing Outlook reports national preleasing at 71.6%, up 2% YoY.
- Fall 2025 enrollment increased 1.8% to 4.9 million students, supporting demand.
- Student housing transaction volume totaled $8.8 billion in 2025, a 28% increase from 2023.
- Construction starts continue to slow, improving medium-term supply outlook.
The big picture
Walker & Dunlop's report signals a shift in student housing from rapid development to fundamentals-driven investment. The sector's resilience—marked by strong preleasing, enrollment growth, and slowing construction—positions it as an attractive alternative to traditional multifamily assets for investors seeking durable cash flow. With $8.8 billion in transaction volume in 2025, the market demonstrates continued appeal despite higher capital costs.
What we're watching
- Demand Sustainability
- Whether enrollment growth and preleasing strength can sustain investor interest amid higher capital costs.
- Market Selectivity
- How institutional capital's increasing focus on high-performing university markets will shape deal flow.
- Pricing Adjustments
- The pace at which pricing becomes more market-specific and transaction activity rebounds.
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