Walker & Dunlop Reports Student Housing Poised for New Investment Cycle as Demand Holds Strong

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. today released its 2026 Student Housing Outlook that signals that a strong preleasing year and resilient enrollment growth, combined with a slowdown in new student housing construction, are setting the stage for a new investment cycle in one of commercial real estate’s strongest-performing sectors.

The Outlook describes how after several years of record rent growth and rapid development, the purpose-built student housing market is shifting into a more fundamentals-driven phase. The findings come as commercial real estate investors look beyond traditional multifamily assets in search of sectors offering durable cash flow and long-term demand. Undersupply continues to exist across most major university markets, leading investors to increasingly target campuses with sustained enrollment growth.

"Student housing has returned to being a fundamentals-driven business," said Will Baker, senior managing director of Capital Markets Real Estate Finance at Walker & Dunlop. "While overall sector fundamentals remain strong, investors are placing greater emphasis on universities with favorable demographics, and barriers to new development, rather than pursuing broad national strategies.”

The report highlights the strength of those fundamentals. National preleasing reached 71.6%, up 2% year over year, while fall 2025 enrollment increased 1.8% from the prior year to 4.9 million students. Investor demand has remained equally resilient, with national student housing transaction volume totaling $8.8 billion, a 28% increase from 2023, underscoring the sector's continued appeal despite a higher-cost capital environment.

Among its key findings, the report identifies several themes shaping the year ahead, including:

• Enrollment growth and preleasing remain strong, supporting demand.
• Construction starts continue to slow, improving the medium-term supply outlook.
• Institutional capital remains active, with increasing selectivity toward high-performing university markets.
• Owners increasingly pursue recapitalizations and structured liquidity solutions instead of outright asset sales.
• Pricing continues to adjust while transaction activity rebounds, creating attractive acquisition opportunities.

"Today's opportunities are being created by discipline," said Christopher Epp, managing director of Capital Markets Investment Sales at Walker & Dunlop. "As pricing becomes more market-specific and new supply moderates, investors with the right local knowledge and capital strategy are well positioned to capitalize on the next phase of the cycle."

Walker & Dunlop is a leader in student housing investment sales and financing. In 2025, the firm closed approximately $716 million in student housing investment sales and, through 2025, has financed more than $14.3 billion and sold more than $10.9 billion of student housing assets. For more information about Walker & Dunlop's student housing experts, visit our website.

To learn more about Walker & Dunlop's student housing capabilities, read the full 2026 Student Housing Outlook here.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.