Top 5 Regions for Student Housing Growth 2025

Hoozzee
May 2
6 min read

Looking for the hottest regions in student housing for 2025? Here’s what you need to know:

The student housing market is booming in 2025 due to rising college enrollments and increasing rental demand. These five regions stand out for their growth potential:

Desert and Mountain States: Enrollment surges are driving up rents and creating housing shortages.
Texas and Southwest: Major universities are expanding, with demand expected to grow 12-15% annually through 2027.
North and South Carolina: Rising student populations are fueling new developments and upgrades.
Greater Houston Metro Area: Enrollment spikes and infrastructure limits are pushing housing demand higher.
High-Growth Rent Markets: Urban, historic, and expensive metro areas face rising rents due to limited new construction.

Key trends driving this growth:

Increasing enrollment in urban and regional universities.
Rising rental prices outpacing available housing.
Property managers adopting technology like Hoozzee to streamline operations.

Quick Snapshot of Texas Rental Trends:

City	Avg. Rent/Bed	YoY Increase
Austin	$1,450	9.8%
College Station	$1,111	4.3%
Tucson	$1,130	7.2%
Phoenix	$980	6.8%

Property managers are leveraging tools to handle rising demand, automate rent collection, and improve efficiency. These regions offer opportunities for investors and managers ready to meet evolving student housing needs.

Student Property Investments | Are They Worth It in 2025?

1. Desert and Mountain States

Universities in the Desert and Mountain States are seeing a surge in enrollment, creating a squeeze on local student housing. With more students looking for housing near campus, rental prices are climbing, and demand is outpacing supply.

This trend has led to the development of student-focused housing communities and pushed property managers to improve operations and services. To tackle these challenges, many are turning to digital tools.

Platforms like Hoozzee help automate routine tasks and provide valuable market insights, making it easier for property managers to handle rising occupancy and remain competitive. These tools are especially helpful in managing the unique demands of the region's growing student housing market.

2. Texas and Southwest Growth Areas

The Texas and Southwest regions are experiencing a surge in student housing demand, fueled by growing university enrollments and population increases. Texas alone has added 1.3 million residents, intensifying the need for more student accommodations.

To address this, major universities are rolling out large-scale development projects. The University of Texas at San Antonio is spearheading a $1.2 billion downtown expansion set for completion in 2025. Meanwhile, Texas A&M University is tackling its 65,500-student population with a $2.5 billion "25 by 25" initiative, which aims to add 15,147 new beds.

According to JLL's 2024 Student Housing Report, demand in Texas metros is expected to grow by 12-15% annually through 2027. Cities like San Antonio and El Paso are emerging as key markets, contributing to rising rental prices.

Here's a snapshot of rental trends in some major cities:

City	Average Rent/Bed	YoY Increase
Austin	$1,450	9.8%
College Station	$1,111	4.3%
Tucson	$1,130	7.2%
Phoenix	$980	6.8%

Property managers face challenges such as strict zoning laws and seasonal demand shifts. Despite these hurdles, some projects are finding success. For instance, the University of New Mexico's "Lobo Village" achieved a 98% occupancy rate by optimizing operations and cutting costs by 18%.

New regulations are also shaping the market. Texas's 2024 HB 2015 law requires maintenance issues in student housing to be addressed within 72 hours. Arizona has introduced stricter security requirements for larger complexes. These changes, combined with evolving student preferences, have led to 72% of new Texas developments including resort-style amenities.

Infrastructure upgrades and shifting student priorities are also influencing growth. Projects like Dallas's Silver Line and Phoenix's Education Corridor are creating transit-friendly opportunities. Additionally, the rise of hybrid learning has increased demand for private bedrooms and study spaces. Properties that offer flexible lease options and upgraded units are seeing better retention rates.

3. North and South Carolina Markets

North and South Carolina are becoming important areas for student housing, following similar trends seen in other regions. Expanding enrollment at major universities is fueling demand, leading to new developments and rising rental prices.

To meet the needs of students, developers and property managers are upgrading properties with features like high-speed internet, dedicated study areas, and wellness facilities designed to support academic success.

Tools like Hoozzee are helping streamline operations and provide focused market insights, making student housing investments more efficient.

4. Greater Houston Metro Area

The Greater Houston metro area is quickly becoming a hotspot for student housing, driven by rising enrollments that are pushing local housing infrastructure to its limits. To keep up with the growing demand, new developments and facility upgrades are in progress. At the same time, property managers are working hard to expand while maintaining high-quality services. Achieving this balance calls for effective management solutions.

Many property managers are turning to platforms like Hoozzee to simplify their operations. With tools designed to handle various aspects of property management, Hoozzee helps with:

Managing maintenance requests efficiently
Automating rent collection and payment tracking
Organizing digital lease agreements
Ensuring compliance with local housing regulations
Providing real-time insights into market trends

5. High-Growth Rent Markets

Several regions are experiencing notable rental trends due to shifting dynamics. In student housing, rising enrollment and limited new construction are driving up rents, particularly in:

Urban campus areas: Scarce land and strict zoning laws make it difficult to add new housing.
Historic districts: Preservation regulations limit development opportunities.
Expensive metro areas: High construction costs restrict the addition of new inventory.

For property managers, the challenge lies in meeting growing demand while keeping rents manageable. Tools like automated systems can simplify market tracking, improve occupancy rates, streamline rental processes, and manage waitlists efficiently.

Rental prices are expected to rise through 2025, especially in areas where student housing construction remains limited. Platforms like Hoozzee offer solutions to help property managers stay efficient and control costs in these competitive markets.

Key Findings

The regional analysis highlights several important trends and opportunities for property managers heading into 2025. The data points to a growing need for advanced property management strategies to meet rising demand and navigate complex market conditions.

Student housing markets are expanding quickly, driven by two main factors:

Rising Enrollment Rates: Increasing enrollment is fueling demand, especially in urban campus areas where limited space makes new development challenging. Property managers need to make the most of existing properties while maintaining high service standards.
Technology Integration: Modern tools are helping address critical operational challenges, such as:
Challenge
Solution Provided
Occupancy Management
Real-time tracking
Maintenance Requests
Simplified processing
Rent Collection
Automated payments
Market Analysis
Data-backed decisions

The findings indicate that regions with the greatest growth potential are those where property managers successfully use technology to meet increasing demand. The student housing sector is expected to keep growing steadily through 2025, with technology playing a key role in ensuring efficient operations and meeting market needs.

FAQs

What is driving the growing demand for student housing in regions like Texas and the Southwest?

The increasing demand for student housing in Texas and the Southwest is primarily driven by rising college enrollment rates and population growth in these areas. Many universities in the region are seeing record numbers of students, creating a surge in housing needs both on and off campus.

Additionally, rental trends in these regions remain competitive, attracting students seeking affordable housing options. Factors like expanding academic programs, a robust job market, and the appeal of warmer climates also contribute to the popularity of these areas for students.

How are property managers leveraging technology to meet the growing demand for student housing?

Property managers are turning to advanced property management software to tackle the challenges of rising demand and limited housing supply in student markets. Tools like Hoozzee streamline operations by offering features such as tenant screening, maintenance tracking, eSigning for applications, and rent collection automation.

Additionally, these platforms help simplify compliance tracking, centralize document management, and provide market insights to make data-driven decisions. By automating key processes, property managers can save time, improve efficiency, and better support the growing needs of student housing communities.

How could new regulations affect student housing development in states like Texas and Arizona?

New regulations in states like Texas and Arizona could impact student housing development in several ways. Changes in zoning laws, building codes, or environmental requirements may influence where and how properties can be constructed. Additionally, stricter tenant protections or rent control measures could affect property management practices and rental pricing strategies.

For property managers, staying informed about these regulations is essential to ensure compliance and adapt to market shifts. Leveraging tools like Hoozzee can help streamline operations, manage compliance, and provide valuable market insights to navigate these changes effectively.