Growing Enrollment with Student Housing

R. Kent Dussair
President
CDS Market Research

When choosing a college, price and reputation are not the only student and parent considerations. Comfort level, location, size, diversity, academics, campus life, athletics, extracurricular activities, facilities and technology resources are also factors. When considering campus life, student housing along with eating arrangements and the social environment have to be weighed. Housing is an ?important component of attracting qualified students to a college and should be regarded as a tool for recruiting students at all levels, including undergraduate, graduate, international, exchange and transfer. Student housing provides safe, secure and stimulating environments that are conducive to students? academic success and personal growth and fosters a sense of community, civic responsibility and an appreciation of the diversity of the university community.

In an effort to compete for students, colleges and universities across the country are making substantial campus improvements, in part by adding enhanced housing and amenities. The type and quality of amenities offered in student housing is a primary factor in attracting students to on-campus housing. In the 2002 survey of housing satisfaction, Education Benchmark, Inc, in partnership with the Association of College and University Housing Officers, determined that one key priority predictor that most influenced students? overall satisfaction was the school?s housing program. ?The American Freshman ? National Norms for 2006″ found that 66.9% of all freshmen interviewed ranked the overall quality of campus facilities as the sixth criteria for choosing a school.

College students are increasingly becoming more demanding when it comes to student housing. They are rejecting traditional ?dorms? and demanding the amenities they have grown up with and expect on-campus housing to rival anything that can be found off campus. The expectations are higher than ever and residence halls can be a ?make or break? factor for students. Students expect more sophisticated housing options such as private bedrooms and baths, Internet connectivity, ATM machines, fully equipped kitchens, spacious living areas, resort-style amenities and colleges and universities are catching on. They now know that to recruit and retain students, they must offer modern living/learning communities that support their academic mission.

According to College Housing Report, 2008 by College Planning and Management, student housing amenities in approximately 90% of today?s residence halls include air conditioning, card access for security, Internet access, kitchens, laundry facilities and study/casual lounges; over 70% include vending machines and TV rooms; 50% have video surveillance and carpeting; 30% or less have classrooms, dining halls, fitness centers and computer centers. As seen in CDS market feasibility studies, newer student housing projects developed by both universities and private developers are incorporating upscale amenities found in apartment style living including larger floor plans, hardwood floors, fireplaces, washer/dryer in each unit, business centers, basketball courts, sand volleyball courts, fitness centers, movie theatres, tanning beds, resort pools and retail such as restaurants and coffee shops into their properties.

Purdue University is opening a new ?residence hall? this year with upgraded amenities. According to The Director of University Residences, Barbara Frazee, the popularity of the new facility will boost the university?s annual renewal rate and keep more students on campus for more of their undergraduate years. ?Our job is to anticipate and respond to what the students, or customers, want and need,” she said. “Students choose to live with us because we are providing options and services that augment their entire Purdue experience.”

According to the College Housing Report 2008, 100% of the universities felt that the quality of their residence halls had an influence on student recruitment and retention. 74% of the universities agreed that the major concern for the next five years is the changing expectations of students. Not surprising, 87% of the institutions polled have a mechanism for soliciting student input when planning a new residence hall or remodeling an existing one.

College enrollments have increased 18% from 2000 to 2007 and are expected to continue to increase at a rate of 20% over the next five years according to a sampling of the most recent student housing feasibility studies conducted by CDS Market Research. Approximately 20% of all students enrolled in universities are living on campus and the average occupancy rate is at 99%. As seen in our research, many upper classmen are opting to live on campus as well as incoming freshmen.

As enrollments increase, the demand for student housing increases also. As seen in CDS studies, some universities are losing new recruits due to the lack of student housing and or the age and condition of existing housing. The greatest challenge many recruiters face is the lack of housing in general and especially the sought after amenities found in newer ?apartment style? facilities as opposed to the traditional ?dorm.? To attract the most qualified students nationally, most recruiters agree on-campus housing is a requirement. As seen in our studies, some universities are turning away as many as 300-400 students every semester due to the lack of housing.

Accessing the need and feasibility for student housing as a means to bolster enrollment is a task which many universities have turned to consultants for help. The process involves an independent assessment of current housing conditions, a thorough analysis of dynamics influencing campus life and culminates with recommendations for a market-supported course of action to meet future housing needs. Methodology can include on-site field analysis of existing housing options, student surveys, interviews with real estate professionals and campus administrators and review of enrollment and other existing data. Supply and demand measurements should be carefully evaluated in terms of student demographic segments as they relate to optimum timing for the appropriate type of housing and to housing locations.