Student Housing Unlocked: What Defines the Sector in 2026? | Beau Garot & Olivia Bunescu

Why It Matters

Understanding these dynamics helps investors allocate capital to the most resilient student‑housing assets, preserving returns as the market transitions from rapid rent growth to margin‑driven performance.

Key Takeaways

• Flagship universities drive enrollment growth, outpacing regional affiliates
• Owner-operator alignment crucial amid rising competition and new supply
• Affordability focus requires diverse price points without sacrificing amenities
• Debt markets remain attractive; spreads tightening, prompting faster capital deployment
• Data-driven underwriting, targeting Power‑Four‑Plus markets, yields performance edge

Summary

The podcast episode “Student Housing Unlocked” features Bill Garot, co‑head of education transactions at Harrison Street Asset Management, discussing the sector’s outlook for 2026. With a $24 billion portfolio of 427 properties and over 240,000 beds, Harrison Street provides a benchmark view of how the student‑housing market is evolving.

Garot identifies three dominant trends: flagship universities are pulling enrollment away from regional affiliates, alignment between owners and seasoned operators is becoming a competitive moat, and affordability is being balanced with location and amenity quality. He notes that rent growth has normalized after several years of double‑digit increases, while national occupancy remains in the mid‑90s, shifting the focus to expense control and NOI preservation.

Specific examples illustrate the points—Illinois’ University of Illinois is seeing year‑over‑year enrollment gains at the expense of nearby campuses, and pre‑leasing activity at power‑four institutions continues to outpace supply. Garot also highlights the emerging “Power‑Four‑Plus” market set, a dozen schools that mimic power‑four selectivity but attract less competition, and stresses the use of selectivity, graduation rates, and freshman demographics in proprietary underwriting models.

For investors, the takeaway is clear: prioritize disciplined acquisition pricing, partner with experienced operators, and leverage granular data to target high‑quality, under‑served markets. Those who can maintain margins in a slower rent‑growth environment while offering a tiered pricing strategy will capture the sector’s upside as new supply catches up to robust enrollment trends.

Original Description

In this episode, Beau Garot discusses Harrison Street Asset Management's investment ethos in Power 4 institutions and his outlook for the student housing sector.

Student housing’s fundamentals are as familiar as ever: high occupancy, steady demand, a pipeline that’s still selective, but the real story in 2026 is where the wins are concentrating and how investors are underwriting them. Harrison Street Asset Management, one of the largest owners in the sector, is leaning into that shift with strategic moves and fresh momentum.

Since the beginning of the year, the company teamed up with LV Collective for the development of Rambler, a 247-unit, 862-bed community near Virginia Tech and Rambler Clemson, another 749-bed project, marking their entrance into the Clemson University market. These moves in the sector mirror the firm’s focus on Power 4 institutions and the pull towards markets with strong fundamentals.

In this episode of Student Housing Unlocked, Senior Associate Editor Olivia Bunescu is joined by Beau Garot, co-head of education transactions in North America at Harrison Street Asset Management, to unpack what that activity says about the market right now. They also touch on why flagships remain the focus, the redefinition of affordability and what precision looks like as debt gets more attractive and competition returns.

Here's a breakdown of the discussion:

* (01:24) Three trends shaping 2026 student housing

* (02:00) Why owner–operator alignment matters more right now

* (04:35) Rent growth normalizes, efficiency matters

* (05:32) Debt is improving and competition is returning to deals

* (06:25) How they’re reading demand today

* (07:39) Concentrated supply, bigger projects

* (08:43) The “Power Four Plus” thesis

* (09:45) Testing demand durability before the asset

* (10:56) How does precision underwriting look in practice?

* (14:09) 2026 advice: don’t overpay

_Music credits: “Easy to find” by Corinne song via Uppbeat.com_

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