Harrison Street: Student Housing Markets
Student housing pre-leasing is up nationally, but a major investor says market fundamentals are diverging sharply between top-tier and overbuilt
Students are leasing student housing faster this year than last, according to CNBC. National pre-leasing for the Yardi 200 markets reached 89.1% in July, up from 88.1% a year earlier but still below the August 2025 level of 89.9%.
This creates new opportunities for investors. However, Mike Gordon, global chief investment officer for real estate at Harrison Street Asset Management, cautions that market fundamentals are widening across different universities and regions. Some schools face high occupancy and lagging construction. Others are overbuilt with falling demand.
National Pre-Leasing Data
According to data from Yardi Matrix, 117 of the 200 major student housing markets tracked had pre-leasing at or above last year's levels in July. The Yardi 200 represents a curated set of the most important markets, covering 90% of the institutional space.
| Metric | July 2026 | July 2025 | August 2025 |
|---|---|---|---|
| Pre-leasing for Yardi 200 markets | 89.1% | 88.1% | 89.9% |
Tyson Huebner, director of research at Yardi Matrix, noted that new supply is increasingly concentrated in large markets, which drags down performance at schools with the most beds and weighs more heavily on national metrics.
A Selective Investment Thesis
Harrison Street is a giant in the sector, with over $24 billion allocated across 432 properties since its launch in 2005. This represents more than 238,000 beds across 200 university markets in North America and Europe. Gordon stated the firm's conviction in student housing remains high, but not for every market.
He said he thinks that creates a really interesting investment environment.
He explained that many investors want access, but few managers have long-term experience. Specialization is now more vital than ever. Differences between university markets have grown quickly due to funding cuts, enrollment trends, and specific student demand.
Gordon pointed to leading institutions like the University of Michigan, University of Virginia (UVA), and University of North Carolina (UNC). These schools, part of the major athletic Power Four conferences, see concentrated enrollment, applications, selectivity, research funding, and student outcomes. They operate at or above 95% occupancy because prospective students value strong graduation incomes, alumni earnings, and research capabilities.
Supply Lag and High-Demand Markets
Housing supply has failed to keep pace with enrollment growth at several key universities. Gordon specifically cited Virginia Tech, Auburn University, and Penn State as examples.
He likened the best university towns to factory towns where the factory never closes. The university is the factory, and what it produces is intellectual capital, he said. It attracts students, obviously, but also professors and researchers, entrepreneurs, companies that want to be close to that intellectual capital, and everyone needs somewhere to live.
Harrison Street acquires and develops assets on its own and through public-private partnerships with state universities. Rising demand in certain markets has also led the firm to sell some holdings. Earlier this year, it sold a 12-property student housing portfolio for $910 million, one of the largest dispositions in the sector in recent years.
A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
