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

Key Terms

preleasing financial

Preleasing is when a landlord or developer signs tenants or obtains firm commitments to occupy space before construction finishes or before the lease term begins. Like getting buyers’ deposits before a new product ships, preleasing lowers the risk of vacant space, helps secure loans and predictable cash flow, and signals demand—factors that directly affect a property’s value and an investor’s expected return.

transaction volume financial

Transaction volume measures how many shares or contracts change hands for a security during a given time period, or the total dollar value exchanged. Investors watch volume because it signals how easy it will be to buy or sell (liquidity) and whether a price move is backed by genuine interest — like counting shoppers in a store to tell if a sale is real or just a quiet day.

recapitalizations financial

Recapitalizations are deliberate changes to a company's mix of debt and equity—like rearranging the pieces of a household budget—to alter how the business is funded and who bears financial risk. Investors care because swapping debt for equity or vice versa affects future interest payments, potential profit per share, dilution of ownership and who controls decisions; those shifts can change a stock's risk profile, credit standing and upside potential.

structured liquidity solutions financial

Tailored arrangements that combine loans, asset-backed deals, derivatives or other contracts to give a company predictable access to cash without a simple one-time loan or equity sale. Think of it like a custom plumbing system that routes different water sources to keep a building supplied; for investors, these solutions change a company’s cash runway, balance-sheet risk, and potential dilution or repayment obligations, so they affect how the business can fund operations and growth.

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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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260714902878/en/

Media:
Nina H. von Waldegg
Public Relations
Phone 301.564.3291
nhvwaldegg@walkerdunlop.com

Source: Walker & Dunlop, Inc.