2025

Student

Housing

Outlook

The student housing sector is poised for a dynamic year in 2025. After a period of slowed transaction volume due to macroeconomic headwinds, the market is rebounding as interest rates stabilize, institutional capital builds conviction, and enrollment at major universities continues to rise. Student housing has cemented itself as a resilient asset class, with rent growth consistently outperforming conventional multifamily housing. As this asset class has matured, transaction volumes have continued to increase along with the average price per bed. Walker & Dunlop remains at the forefront of student housing finance and investment. As the #1 student housing lender with Fannie Mae and the #2 student housing lender with Freddie Mac, our team is committed to delivering the insights and expertise needed to help our clients capitalize on market opportunities.

This year, we are further expanding our global presence with the opening of our London office, a strategic move that extends our reach into the European student housing sector. We anticipate that a significant percentage of our London team’s transaction volume will be in the student housing space.
In this 2025 Student Housing Outlook, we explore recent trends and new student housing asset class predictions. Thanks to Walker & Dunlop’s depth of transaction volume and servicing exposure, our proprietary aggregated data allows us to compile the most
comprehensive and accurate market portrayal. We trust this report will provide valuable insights as you navigate the evolving student
housing landscape. Our team of experts is ready to assist you in making informed investment decisions.

KEY FACTORS SHAPING STUDENT HOUSING IN 2025

The highest volume of multifamily and student housing loan maturities in history, estimated at $8-10 billion, will drive transaction volume.
Institutional investors, including foreign capital from Asia, Europe, and the Middle East, are increasing their presence in the market.
Debt funds and life companies are throwing their hats into the lending ring, now considering (and winning) the student housing business.
Southeastern Conference (SEC) remains the most active conference for student housing investment, with the Big Ten gaining momentum as larger schools see record enrollment growth.
Supply constraints persist, keeping occupancy levels high and driving further rent increases.
Fannie Mae is re-emerging into the student housing finance space, increasing competition with Freddie Mac and improving financing options for borrowers.
As leaders in the student housing space, Walker & Dunlop provides you with insights and experience to optimize your investments in this ever-changing market.

In this 2025 Student Housing Outlook, we analyze key trends from the past year and provide insights into what lies ahead for the student housing market.
A NEW GENERATION OF STUDENT HOUSING
Student housing continues to evolve, offering high-end amenities that reflect the rising cost of attending college. While past trends focused on extravagant features like golf simulators and movie theaters, today’s students prioritize functional, well-located properties
with practical amenities that enhance their academic and social experiences.
TRANSACTION REPORTING
After a 71 percent year-over-year decline in 2023 transaction volume, the market rebounded in 2024, driven by stabilized interest rates, increasing appetite from institutional capital, and rapidly growing university enrollment. Transaction volume is expected to climb
even higher in 2025, fueled by $8-10 billion in loan maturities for apartment housing that includes substantial volume in student housing, compelling supply
and demand fundamentals, and renewed lender activity.
FASTEST-GROWING FLAGSHIP UNIVERSITIES
A common question remains: “Where should I invest?” Our answer: High growth university markets. The SEC continues to dominate student housing demand, while
the Big Ten is gaining momentum, fueled by enrollment surges at large state-supported institutions. Investors are also closely watching how the shift from Power Five to Power Four conferences impacts student housing markets across the country.
STUDENT HOUSING SUPPLY AND DEMAND VARIATION
The student housing supply landscape continues to be shaped by limited new development and strong demand, leading to high occupancy rates and steady rent growth. Developers are still facing challenges in securing equity and financing, keeping new supply constrained.