National Report Measures Emerging Market Standards

by Katie Sloan

Washington, D.C. — NSHC: New construction and southeast markets are strong  

Washington, D.C..  —  The National Student Housing Council, an affiliate of the National Multi Housing Council, has released a white paper that analyzes financial metrics for the student housing market. The report, “NSHC 2011 Income Expense Analysis Supplement: Potential Rent, Concessions and Vacancy Loss,” collected data from 321 properties, which accounted for 177,905 beds, in various U.S. regions over a 12 month period from 2010 to 2011.

A series of balance sheet line items, such as gross potential rent, concessions, vacancy loss and gain/loss from lease, were used to gauge how efficient the student housing market is at capturing full rent potential.

The analysis revealed three main takeaways: On average, student housing properties netted 88.9 percent of their gross potential rents on a per bed basis after concessions and vacancy losses, and properties in the Southeast  had the strongest regional performance, taking in 90.8 percent of their gross potential rents on average.

Secondly, newly constructed student housing properties spent more on concessions and had higher levels of vacancy loss, but they netted 10 percent to 14 percent more dollars per bed than their older counterparts.

Lastly, a per-bed leasing model corresponded to lower levels of concessions and vacancy losses. Approximately 84.4 percent of survey respondents indicated they lease by the bed.

The report is available online at, free for members or $400 for non-members.

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