NMHC Research Report Examines What Today’s Students Want In Their Off-Campus Rental Housing

WASHINGTON, DC – Off-campus student housing is one of the apartment industry’s most important niche markets as many of the nation’s 75 million “Echo Boomers” head to college and overwhelm on-campus housing inventories.  To help firms better understand the needs of this market, the National Multi Housing Council has published a new research report titled What Do Students Want?.  Based on focus groups with students at nine universities, the report explores what students look for when selecting an off-campus apartment. 

“Today’s students prefer off-campus student housing to dorm life for a variety of reasons, such as cost, freedom and more space,” said NMHC Senior Vice President Jim Arbury, “but they appear to be most interested in the social opportunities these properties enable and encourage and the opportunity to be on their own for the first time.” 

According to NMHC’s research, one of the key factors students use to rate a property is how lively it is.  They are particularly drawn to properties where the layout includes a “central space” that combines the clubhouse and recreation amenities (pool, volleyball courts, and picnic areas) and promotes the social interaction they want.  Not surprisingly, recreational amenities, such as fitness centers, pools and volleyball courts, rated as more valuable than academically oriented amenities, such as computer labs.

In general, however, students were more interested in the apartment layout than the property’s amenities. Contrary to the stereotype of students living on pizza, the number one request from the students was for larger kitchens with more counter and cabinet space.  Second to the kitchen in importance was the bedroom.  Overall the students said they would sacrifice space in the living room for larger bedrooms and abundant storage space.

Students were nearly unanimous in their preference to rent by the bed (as opposed to sharing a lease with their roommates).  They also prefer all-inclusive rents with as few extra fees as possible to make life simpler, although they encourage properties that offer bundled rents to also publish a “base rent” to allow fair comparisons with competitors. 

“While we went into this research project primarily looking to identify the ‘must-have’ amenities for off-campus student housing, we ended up hearing as much, if not more, about how student renters want to be treated,” said Arbury.

Ultimately, the priority that emerged in most of the focus groups was not the amenities they wanted at their properties or in their apartments, but how they want to be treated.  Moving into an off-campus property is a rite of passage for most students.  They approach it with trepidation and assume that they will not be treated with the same respect as older renters.  They are quick to see failures in the leasing and management process as confirmation of their pre-conceived notions. 

Apartment firms that understand that and can ease the transition by providing model questions to ask leasing agents, plain-English summaries of leases, and “how-to” guides on caring for an apartment will stand out in the market.  

“If the industry hopes to create a positive impression of rental housing in the minds of these customers, who are by definition tomorrow’s renters, excellent customer service may be more important in this sector than in any other,” said Arbury. “The good news is that firms that get it right can win long-term customers.  Students repeatedly said that if they could find a property with the right amenities, affordable rent, and a management staff that treats them honestly and with respect, they would stay for two or three years.”

The full report, which can be purchased at www.nmhc.org/goto/studentswant, covers: why students prefer off-campus housing; the ideal student apartment; most desirable amenities; what students are willing to pay for; deal breakers; “screech factors”; the leasing experience; the ideal web site; and regional and market variations.  Detailed summaries of the nine focus groups conducted are also included.  Universities surveyed were Arizona State University, East Carolina University, Pennsylvania State University, University of California–Davis, University of Colorado–Boulder, University of Florida, University of Iowa, University of Oregon, and University of Texas–Austin.

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Based in Washington, DC, NMHC is a national association representing the interests of the larger and most prominent apartment firms in the U.S.  NMHC's members are the principal officers of firms engaged in all aspects of the apartment industry, including ownership, development, management and financing.  NMHC advocates on behalf of rental housing, conducts apartment-related research, encourages the exchange of strategic business information, and promotes the desirability of apartment living.  Nearly one-third of Americans rent their housing, and over 14 percent live in a rental apartment.  For more information, contact NMHC at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC's web site at www.nmhc.org.

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