Student Housing Research Finds Costs Rising
On and Off Campus
Part 2 of a two-part series on Cheddar TV’s interview with Jay Denton, Axiometrics senior vice president of analytics, on the findings of recent student housing
Cheddar TV asked what has grown or changed in the student housing industry (as answered in Part 1 of the series), then followed up by asking if the changing industry caused increasing costs.
As the student housing industry, has grown, properties have been built closer to campus, property types and amenity offerings have expanded, and the overall finish of the properties have evolved. In many cases, this results in higher costs, the student housing research found.
“Of course, there are higher-end products, but affordable options as well,” Denton answered, “Supply and demand have come back in balance.” The sector is still maturing, and there is pent-up demand in many markets.
Cheddar asked, “What are the schools with the most expensive real estate and where should students look for affordable options?”
Said Denton, “The University of Southern California has the highest rent per bed, along with Ann Arbor and Austin (where the universities of Michigan and Texas are located),” Denton answered. These schools not only have to house a good volume of students, but also have large football programs so the demand is higher. This results in increasing enrollment and higher land costs.
In terms of where students can find affordable housing, “It depends on the school, but there are affordable options out there,” Denton answered. The more mature markets will have options at the low and high price points.
Cheddar also asked, “Are there schools seeing the rate of increase quicker than others?”
“There is typically steadier growth for student housing, around 2%-3% is good,” Denton answered. A few schools fall outside of this norm, such as the University of North Carolina-Charlotte, Kent State and University of Central Florida, have seen higher growth rates, Denton added.