As the new academic year begins, student housing leasing activity is gaining momentum nationwide, driven by stronger pre-leasing compared to the previous year. According to the Yardi index, pre-leasing in key student housing markets reached 89.1% in July 2026, surpassing July 2025 levels. However, occupancy rates vary widely across different university towns, with some markets experiencing high demand and constrained new construction, while others face challenges from oversupply and declining student numbers.

Harrison Street Asset Management stands out as a major player in the student housing sector, managing over $24 billion in assets across 432 properties serving more than 238,000 beds in North America and Europe. Mike Gordon, the firm's global chief investment officer for real estate, emphasized that although the firm remains confident in the overall student housing market, it is increasingly important to be selective about the specific university markets invested in. Factors such as enrollment trends, funding cuts, and shifting student preferences have created greater disparities among markets.

Gordon highlighted that premier public research universities—such as the University of Michigan, University of Virginia, and University of North Carolina—continue to attract strong student demand, often operating at or above 95% occupancy. These institutions see housing demand outpace supply growth, making their markets particularly attractive for investment. Gordon likened successful university towns to "factory towns," where the university acts as an intellectual hub that continuously generates demand for nearby housing.

Harrison Street’s strategy includes both development and asset acquisition, often partnering with universities and public entities. In response to rising demand, the firm has selectively sold off certain portfolios, including a significant 12-property student housing portfolio sold earlier in 2026 for $910 million. This approach reflects the company's focus on specialization and market-specific insight to navigate a complex and evolving student housing landscape, where broad national metrics can obscure large local market differences.