The South Is Leading Student Housing Development — And the University of Arkansas Is at the Center of It
- Zoie Garcia
- Dec 9, 2025
- 3 min read
The student housing market is shifting nationwide — and here in Arkansas, those changes are creating real opportunities for buyers, sellers, and investors.
After several years of rapid expansion, the national student housing sector is beginning to normalize. Developers delivered roughly 27,000 new beds in 2025, down from nearly 35,000 in 2024, as construction slows to match more typical enrollment-driven demand.
Even with this moderation, the fundamentals remain incredibly strong:
Final occupancy across the Yardi 200 surpassed 95%
Preleasing for 2025–2026 tracked right along historical averages
National rents were up 0.8% year-over-year as of September
But the story is different in the South — and especially here in Fayetteville.
Southern universities make up more than one-third of all student housing beds currently under construction nationwide. And among the top performers is right here at home: the University of Arkansas.
As both a REALTOR® and a U of A student, I get a front-row seat to what’s happening in our market — and why investors are paying attention.
University of Arkansas: One of the Strongest Student Housing Markets in the South
The U of A isn’t just growing — it’s leading the South in student housing demand.
Demand Is Rising Faster Than Supply
As of September:
2,075 beds are under construction
Total enrollment is 33,610 students
The university currently offers 9,765 on-campus beds
That means a large percentage of students — especially upperclassmen — rely on off-campus rentals. This is a massive opportunity for property owners and future investors.
Enrollment Is Up 4.6% — the Highest in the Region
The University of Arkansas posted the largest enrollment increase among Southern universities in the ranking. More students means more long-term stability for the rental market.
Preleasing Is Extremely Strong
According to Yardi Matrix:
Preleasing for the 2025–2026 school year is already at 97.2%
Student rentals are absorbing quickly — even before the school year begins. For local landlords, this translates into reliable occupancy and predictable cash flow.
Major New Development: VERVE Fayetteville
Subtext and Kayne Anderson Real Estate recently announced VERVE Fayetteville, an 845-bed purpose-built student housing project coming in 2027.
This is Subtext’s first development in the state — a big sign that national investors see long-term value in our market.
What This Means for Arkansas Buyers, Sellers & Investors
Whether you're buying your first home, expanding a rental portfolio, or preparing to sell, these trends directly impact the Northwest Arkansas real estate landscape.
For Investors
Student housing in Fayetteville offers:
Near-guaranteed occupancy
Consistent rental revenue
High demand for updated, walkable, off-campus housing
Strong long-term appreciation due to U of A growth
Single-family homes, townhomes, and small multifamily near campus continue to be strong performers.
For Homeowners Considering Selling
Increasing student population and expansion projects boost demand for:
Starter homes
Properties near campus
Turnkey rentals
If you own property in Fayetteville, especially within a 10–15 minute radius of campus, your home appeals not just to buyers — but to investors across the South.
For Parents of Students
More families are choosing to buy instead of rent during their student's four years:
Build equity
Offset mortgage costs with roommates
Sell later into a strong market
It’s one of the most underrated wealth-building strategies in college towns.
Final Thoughts from a REALTOR® Who Also Lives This Market
As a current University of Arkansas student, I see firsthand how quickly housing fills up, how busy campus becomes, and how competitive rentals are — long before the fall semester arrives.
As a REALTOR®, I see the other side: investors calling from out of state, families searching for smart housing solutions, and homeowners benefiting from the city’s growth.
Fayetteville is one of the strongest student housing markets in the South — and it’s only getting stronger.
If you’re thinking about buying, selling, or investing near the University of Arkansas, I’d love to help you make the most of this fast-growing market.
Zoie Garcia, REALTOR®
eXp Realty | NWA Branch
License #AR SA00099895
479-383-5644
Committed to Fair Housing and the highest standards of the NAR Code of Ethics.
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