Walker & Dunlop sees student housing poised for new investment cycle as construction slows

Walker & Dunlop’s 2026 Student Housing Outlook flagged a new investment cycle as demand holds up amid slowing new construction.

• National preleasing rose to 71.6%, up 2% year over year; fall 2025 enrollment increased 1.8% to 4.9 million students.
• Student housing transaction volume reached $8.8 billion, up 28% from 2023, despite higher capital costs.
• The report pointed to persistent undersupply in major university markets, driving more selective institutional capital toward campuses with durable enrollment trends.
• Owners increasingly favor recapitalizations or structured liquidity solutions over outright sales as pricing resets and deal activity rebounds.