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tudent housing, a sector that has been booming in recent years, is now feeling the pinch of economic uncertainty. Rent growth in this sector slowed to just 0.9% in July across 200 colleges surveyed by Yardi, with the average advertised asking rent falling to $905 per bed, a 1.4% decrease from its peak in March. This slowdown is attributed to operators struggling to lease remaining inventory.

    Robert Bronstein, founder and CEO of Scion, one of the country's largest owners and operators of student housing, notes that this trend is not just limited to lower-end students who are struggling to afford housing. Even higher-end students and parents are changing their preferences, opting for more affordable options over luxury amenities. "People are saying, 'You know what, there's a building that's three years old, and it costs 30% less than a brand new building, and I wasn't going to use the hot tub on the roof anyhow. I'm going to go with the less expensive option,'" Bronstein said.

    Scion plays in the middle market, acquiring properties at large schools across the country. Bronstein believes that after Covid, there's been a shift in investment toward large, flagship public universities, and it's accelerating. "The top-tier, 40, 50, 60,000-student flagship public schools, they're posting year after year after year of record enrollment growth," he said.

    This trend is expected to continue, with Walker and Dunlop predicting a "dynamic" year for the sector in its 2025 student housing outlook report. The report notes that there's been a shift away from higher-cost buildings stacked with bells and whistles, towards functionality, convenience, and affordability. Scion is well-positioned to take advantage of this trend, with Bronstein saying he's bullish about the market due to a drop-off in new development due to higher costs for construction and capital.