Oversupply in Student Housing Market?

From today’s Wall Street Journal:

Developers have built approximately 310,000 off-campus student beds in the past decade. A record 51,000 new off-campus beds were delivered this academic year alone, with more than 50,000 expected in 2014, according to real-estate research firm Axiometrics Inc…

So far, occupancy rates for private, off-campus student housing are holding strong as landlords slash rents and offer last-minute deals to woo students who normally live on campus.

But there are warning signs. Many landlords waived application fees and threw in gift cards to fill beds this year. “We certainly did see some properties that had to make deals,” said Jay Denton, vice president of research at Axiometrics. Mr. Denton added that overall rents rose less than 0.5% nationwide this year.