|Date: September 19, 2006|
As many of the 75 million children of the Baby Boomers—call them “Echo Boomers” (those born between 1976 and 1994)—head off to college this decade, university enrollment is increasing across the country.
As a result, many apartment firms see a desirable market niche—providing housing for college students. Given the great potential of the student housing niche, the National Multi Housing Council has published a series of research reports to help apartment firms better understand the dynamics of this sector. This is the fourth report in that series.
This latest student housing report leads us back to the 64 college towns we examined two years ago in Student Housing 101: Where are the Opportunities? to determine what kind of rent growth the properties in those markets have recorded between 2004 and 2006. Key findings of the research are posted below.
In addition to this general analysis of those findings, this report offers a detailed market profile of each of the 64 markets surveyed. These market profiles include:
Demographic information for the total apartment market from the 2000 Census;
University enrollment trend information; and
A snapshot of the off-campus student apartment market, including the average age of properties studied and the rent distribution by unit type.
Click here for a list of the 64 markets studied.
PRICING AND ORDERING INFORMATION
Student Housing 201: 2004-2006 Rent Growth in 64 College Towns
- $400 for NMHC/NAA members
- $600 for non-members.
To order the report, click here.
- NAA Members: Online orders cannot be processed for NAA members. Please click here for an order form.
KEY FINDINGS IN STUDENT HOUSING 201
Units with three or more bedrooms tended to have the highest median growth rates from year to year, ranging from nine to 13 percent.
The areas with the highest rent growth include the University of Wisconsin(Madison), the University of California-Irvine, and Georgia Southern University.
Negative rent growth was recorded for several unit types in different areas of the country. Clemson University(Clemson, SC), for example, posted negative rent growth in four of the unit types examined. Virginia Tech came in second with negative rent growth in three unit types.
California schools dominate the list of high rent markets. Stanford University and San Jose State Universityposted the highest rents for six of the eight unit types for which data was available. A third California school—the University of California-Irvine—is on the high rent list for five unit types. Two non-California schools also rank among the highest rents for five unit types—Cornell University (Ithaca, NY) and Rutgers University (New Brunswick, NJ).
Despite the conventional wisdom that student housing providers must offer nine-month leases, just a small number of properties offered only nine-month leases. One-third of the properties offered both nine- and 12-month leases. The remaining properties offered traditional 12-month leases.
Student housing leases remain largely “by the unit” and not “by the bed.” Fully 1,300 of the 1,508 properties surveyed rented by the unit. Only 140 rented by the bed. A small number offered both types of leases. Interestingly, by-the-bed properties seem to be more common in the southern states.
ADDITIONAL NMHC STUDENT HOUSING RESEARCH
Off-Campus Student Housing: 2011 Income and Expense Benchmarking Survey. Expands on NMHC's 2010 Off-Campus Student Housing: Income and Expense Benchmarking Survey, providing more in-depth state and regional data for operating and line-item expenses for 341 properties. (2011)
NMHC Special Off-Campus Student Housing: Income and Expense Benchmarking Survey. Provides information on total operating expenses as a percent of rent along with seven expense line items within operating expenses for 197 properties. (2010)
- NMHC Special Student Housing Report: Has the Recession Had an Impact? Seeks to determine whether the dramatic U.S. economic downturn has had an impact on enrollment and on-campus dormitory vacancy rates.
- On-Campus Housing Costs: More than Meets the Eye. Researches 181 universities and offers current enrollment, basic demographic data for the locality (from the 2000 Census) and baseline on-campus housing price data and billing practices.
- What Do Students Want: Understanding Today’s Off-Campus Student Housing Market. Explores explores what students look for when selecting an off-campus apartment based on in-depth focus groups at nine universities.
- Student Housing 103: A Survey of 184 University Housing Departments. Examines enrollment trends, existing on-campus housing stock and each school's own prediction of its need for future on-campus housing.
- Student Housing 102: An In-Depth Look at Properties Leased By-the-Bed. Examines the smaller subset of properties that lease their apartments by the bed instead of by the unit.
- Student Housing 101: Where are the Opportunities? Analyzes the demand for off-campus housing in 64 "college towns" across the country.