University enrollment trends are increasing student housing demand primarily at large public universities, where rising freshman, transfer, international, and graduate student populations are outpacing available on-campus housing. This imbalance is driving sustained demand for off-campus student housing in university markets that are supply constrained.
While some headlines focus on enrollment decline at small or regional institutions, these trends do not reflect what is happening at the large public universities that drive student housing demand.
Many Tier 1 public universities are absorbing enrollment from smaller schools while continuing to expand freshman and transfer class sizes. These major schools are currently benefitting from stronger brand recognition, broader academic offerings, and better long-term career outcomes for graduates.
For example, the University of Houston reported record enrollment in Fall 2025, with approximately 49,000 total students, including more than 6,700 first-time freshmen – its largest freshman class. Nationwide, flagship universities are observing just as significant enrollment momentum.
These schools represent the core demand base for off-campus student housing.
What is Driving Enrollment Growth?
The Economic Value of a College Degree
Despite changes in how higher education is delivered, the long-term earnings advantage of a college degree powerfully motivates students to obtain a higher education.
A 2024 report by the US Bureau of Labor Statistics holds that workers who are college graduates earn about 66% more per week on average than those with only a high school diploma. This reality has permeated the minds of the rising generation, motivating those seeking long-term career stability to attend college and become professionals.
International Student Recovery and Growth
Among these increasing amounts of applicants are many international students. United States universities saw a 5% increase in international students in the 2024-25 school year from the prior year. A post-COVID world is to credit for such abounding numbers.
These students are significantly more reliant on off-campus housing, as they cannot commute from family residences and typically arrive without established housing options. Furthermore, as universities prioritize global diversity and benefit financially from international tuition, international enrollment is a durable contributor to student housing demand.
Expansion of Graduate Programs
With record highs in students applying to undergraduate programs also comes an inflation in graduate program applicants. Graduate programs in STEM, healthcare, business, and data science continue to expand as students pursue advanced credentials.
Graduate students often remain enrolled year-round and thus lease housing for longer periods. This provides student housing properties with even more stable occupancy patterns.
Why Enrollment Growth Translates Directly to Housing Demand
As enrollment rises, on-campus housing capacity frequently fails to keep pace. What’s more, many universities are limiting on-campus housing expansion due to land constraints, capital costs, and operational considerations.
When enrollment growth exceeds on-campus housing availability, excess demand flows directly into the surrounding off-campus options; particularly into properties located within walking distance of campus.
Supply Constraints Near Major Campuses
Most of these larger universities sit on land that has been fully built out for decades, like Oklahoma State, University of Alabama, and UT Austin.
Investing in properties that already exist in these areas is key to success. They are seeing full occupancy rates that are not expected to dwindle any time soon. Such properties include One on Fourth in Stillwater, Oklahoma and The Walk in Tuscaloosa, Alabama.
Implications for Student Housing Performance
Higher enrollment and stagnant supply have led to consistently high occupancy rates at off-campus student housing. Record-breaking university population growth drives this sustained demand.
Investor Takeaway
Enrollment growth at large public universities continues to support strong student housing demand. For investors, understanding where enrollment growth is occurring and focusing on proximity to flagship campuses is critical to evaluating long-term student housing performance and investment success.
