The Future of Student Housing

National Trends in Student Housing

Inter-City Visit toBloomington, Indiana

September 10, 2012

National Demands

Off Campus Housing

Using data from the U.S. Department of Education and the U.S. Census Bureau between 2000 and 2010 (the last decade) there was a 38.7 percent increase in enrollment in public universities which led to a 21.4 percent growth in the number of students living off campus.

Only five states (California, Florida, Hawaii, Maryland and Utah) have been able to provide enough additional dorm beds to maintain dorm residency levels against growing enrollments.

Student Housing Business, 2012

Competitive Markets

Population 2010: 76,500 80,500 92,000 143,000 295,800 2030: 100,000 108,200 110,000 207,800 351,800

Percentage of renters 2010: 55% 65% 77%* 43% 45%

Most frequent mode of transportation after the automobile Walk Walk Walk Bicycle Walk

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Competitive MarketsCommunity

Population: 76,500 80,500 92,000 143,000 295,800 Growth Rate: 17% 10% 9.4% 21% 13% (last 10 years)University Enrollment: 29,000 42,500 45,000 30,000 27,000 Growth rate: 19% 14.5% 10% 29.5% 13% (last 10 years)Student population as percentage 2010: 38% 53% 49% 21% 9% 1970: 50% 69% 49% 39% 10% Beds: 8,900 15,651 17,000 8,700 6,434 % of students: 30% 37% 38% 29% 24%

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Demand for off campus

Off Campus Housing

Using the 21.4% number that creates the following demands on off campus markets that compare with Chapel Hill and Bloomington campuses.Chapel Hill, UNC – 21.4% = 4,000 studentsBloomington – IU - 21.4% = 6,000 studentsState College – PSU 21.4% = 6,000 studentsFort Collins – CSU – 21.4% = 4,500 studentsLexington – UK – 21.4% = 4,000 students

Demand for off campus

Off Campus Housing

Using the 21.4% number that creates the following demands on off campus markets that compare with Chapel Hill and Bloomington campuses.Chapel Hill, UNC – 21.4% = 4,000 students 2,228 Bloomington – IU - 21.4% = 6,000 students 6,385State College – PSU 21.4% = 6,000 studentsFort Collins – CSU – 21.4% = 4,500 studentsLexington – UK – 21.4% = 4,000 students

Chapel Hill, NC

Competitive Markets

University enrollment 29,000University growth rate 2000-2010 19%Enrollment increase since 2000 4,100Housing: Halls/Dorms 36

Beds (including Greek) 8,900% of student body 30%Increase since 2000 1,872

Off campus demand 20,100Off campus demand increase since 2000 2,228

Chapel Hill, NC

Competitive Markets

University enrollment 29,000University growth rate 2000-2010 19%Enrollment increase since 2000 4,100Housing: Halls/Dorms 36

Beds (including Greek) 8,900% of student body 30%Increase since 2000 1,872


Bloomington, IN

Competitive Markets

University enrollment 42,500University growth rate 2000-2010 14.5%Enrollment increase since 2000 5,424Housing: Halls/Dorms 21

Beds (including Greek) 15,651% of student body 37%Increase since 2000 -961


Bloomington, IN

Competitive Markets

University enrollment 42,500University growth rate 2000-2010 14.5%Enrollment increase since 2000 5,424Housing: Halls/Dorms 21

Beds (including Greek) 15,651% of student body 37%Increase since 2000 -961


Enrollment and Population

Competitive Markets

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000130,000140,000150,000160,000170,000180,000190,000

Monroe County PopulationIU EnrollmentTippecanoe County PopulationPurdue Enrollment

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Competitive Markets

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10,00020,00030,00040,00050,00060,00070,00080,00090,000

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Competitive Markets

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000130,000140,000150,000160,000170,000180,000190,000


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Competitive Markets

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

10,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000130,000140,000150,000160,000170,000180,000190,000


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National Trend to By Design

Off Campus Housing

As a result of the additional pressure for off campus housing for students we have seen pressure put on our core neighborhoods surrounding campuses nationwide.

The result has been By Default Student Housing.

By Default Student Housing












Off Campus Housing

•More than one person per bedroom•Often only 1 bathroom per unit•Inadequate parking facilities•Lack of private and public spaces (Porches, rear yards, etc).•Access/Safety issues (ingress-egress)•Close to campus and other amenities•Adjacent to owner occupied properties•Absent or not on site management

Student Housing

National Trends

National Trends

Off Campus Housing

By Design Student Housing started in the 1990’s, when investors saw an opportunity to provide specialized housing for University Students.

2 and 4 bedrooms typically with 2 bathrooms

Large living spaces (kitchens and living rooms)

Amenities, pools and clubhousesLarger complexes on multi-family land far

from campus

What is it today?

•Residential product designed for a University related population that reflects the social trends of today’s University communities.

•Residential product designed for the 18-26 year old, (born 1986-1994).

By Design Student Housing

What is it today?University student population likes to live together.

Dorms have been on campus for years.Large homes and Fraternities/Sororities.Freshman required to live on campus.Universities strive to create a community.Universities can’t house all students.


What is it today?Social trends of today’s University population.

Socially conscious development.Low impact on the environment.Energy efficient design and construction.Community activities – engaged management

staff.Sustainability – walkable, pedestrian

friendly. – recycling programs.

– access to public transportation.


What is it today?Residential product designed for the 18-26 year old.

Born between 1986-1994.Grew up in the 1990’s and 2000’s.Suburban homes with large living areas.Private bedrooms and bathrooms.Cell phones, cable television, high speed

internet.Country club and athletic club memberships.


What is it today?Design Residential product.

a. 1,2,3,4,5 and 6 bedroom dwelling units.b. Full kitchens and laundry facilities.c. Fully furnished dwellings.d. Large living areas.e. Private bedrooms and bathrooms.f. Cable television and high speed internet services.g. Fitness center with athletic club quality.h. Clubhouse – internet, gaming, TVs, Study Rooms,

etc.i. On site management staff that are engaged with

residents.


Location, Location, Location

In most university communities there are 2 options

Downtown – Expensive landDowntown – Higher construction costDowntown – Near campus Downtown – compact urban form

Suburban – Commute to campus Suburban – Low densitySuburban – Higher infrastructure/services

cost Suburban – Less expensive land

Location is key to real estate

National Trends

Off Campus Housing

Urban Products:• Mid rises 25-50 units/ac 75-150 beds/ac

Parking for 25-75% of beds• High rises 35-100 units/ac 100-300 beds/ac

Parking for 25-50% of bedsSuburban Products:• Townhomes & Flats 12-20 units/ac 36-60

beds/acParking for 100-110% of beds

• Cottages 10-12 units/ac 40-60 beds/acParking for 100-110% of beds

National Trends

Off Campus Housing

Products: Examples


Bloomington, IN223 Units690 Beds2,3,4 Bedrooms65% Parked(35% on site)


Madison, WI264 Units476 Beds1,2,3,4 Bedrooms20% Parked


Raleigh, NC149 Units550 Beds2,3,4,5 Bedrooms100% Parked


West Lafayette, IN193 Units731 Beds2,3,4,5 Bedrooms100% Parked


West Lafayette, IN193 Units731 Beds2,3,4,5 Bedrooms100% Parked


Indianapolis, IN261 Units675 Beds1,2,3,4 Bedrooms63% Parked


Indianapolis, IN261 Units675 Beds1,2,3,4 Bedrooms63% Parked


Richmond, VA270 Units691 Beds1,2,3,4 Bedrooms73% Parked






Madison, WI359 Units669 Beds1,2 Bedrooms25% Parked

















Student Housing

Where do we go from here?

•The pressure will continue.Core neighborhoodsOlder multi-family productsDevelopment of new products

•Continued demand for quality product.

Bedroom bath pairsAmenities, Amenities, AmenitiesFull line of services included

Future of off Campus Housing

•What Can Communities Do?

• Understand the demand over the next 20 years.• Understand the market product demand.• Set goals and policies for accommodating demand.• Through policies and ordinances• Appropriately locate density• Appropriately incentivize development• Anticipate the need for services


•Bloomington• Growth Policy plans of 1999 and 2002• Focused on preserving core neighborhoods• Focused on compact urban form• Focused on more residents in the downtown

• UDO- zoning ordinance:• Density in the downtown• Unrelated adults in core neighborhoods•Mechanism for increased density• Identified areas appropriate for growth


•Bloomington• Results

“1991 and 2002 plan helped to stop the trends of student dominated neighborhoods” Tim Mueller, Bloomington Planning Director 1977-1995.

“Higher density in the downtown, close to services”Tom Micuda, Bloomington Planning Director

“Party Houses have decreased in neighborhoods”Lisa Abbott Director of HAND


Thank You

Travis [email protected]

Real Estate

The Future of Student Housing