Student housing shortages continue to be a huge challenge for many colleges and universities. The lack of available space often affects the well-being and academic performance of students who are forced to scramble for housing.
Many universities typically plan to house from 25% to 35% of their students on campus. That leaves the majority of the student body responsible for finding their own off-campus living arrangements. The struggle many students encounter in their search for affordable housing creates additional concerns for higher education.
The demand clearly exists for additional on-campus university-sanctioned student housing, but many institutions lack the funding sources and time to fully address student housing concerns through new developments or renovations. Instead, they often try to address their immediate housing demands by increasing the number of beds in existing facilities.
That may lead to overcrowding, and students are faced with less than ideal options: paying higher rent because of the greater market demand for off-campus housing, longer commutes for students because affordable housing may be farther from campus, and even deferrals from enrolling in classes in hopes of securing on-campus housing in the following semesters.
Private partners
Colleges and universities may be able to ease their housing crises by partnering with private developers and operators that specialize in student housing. Such developments can alleviate the financial and logistical strain on higher education institutions and their students.
University housing officials should seek out firms with expertise in student housing, development and construction, and facilities management. They also should have an understanding of the importance of the residence life needs for a campus. These firms may also have keen knowledge of permitting and construction regulations and access to capital to carry out housing projects more efficiently.
Firms that specialize in student housing are up to speed on new and evolving amenities that make campus living more desirable, as well as the latest efforts to bolster campus safety. They can make sure that a school’s residential life program aligns with the culture of a campus and meets the specific needs for undergraduate or graduate housing.
Aside from development expertise and management, one of the greatest benefits of a private partnership is financial. Universities can circumvent financial barriers by partnering with a third-party developer that can finance new developments or renovations.
In recent years, privatized university housing has emerged as an important alternative. Many higher education institutions have used Public-Private Partnerships (P3) financing to build student housing.
By providing universities with capital management, operational expertise and business acumen, private sector partnerships can be an alternative approach that enhances the housing experience for the institution and for students.
Partnership model
In 2012, Howard University was looking to build residence halls on its Washington, D.C., campus that reflected its historic character while offering modern housing and amenities to meet the demands of students.
It collaborated with a private partner to construct undergraduate housing and meet the increasing demand for campus living. The partners sought to ensure each project decision prioritized the student experience while balancing financial resources.
The two suite-style residence halls--College Hall North and College Hall South--opened in 2014 and provided 1,360 beds in 699 units.
Following the successful delivery of the buildings, Howard University requested that its private partner, Campus Apartments, also handle the transition from construction to operations and manage the buildings in coordination with the university’s Student Affairs and Residence Life teams. Howard subsequently chose Campus Apartments to manage the day-to-day property and facilities management for on-campus residence halls and two residence halls off campus.
For Howard University, outsourcing student housing development and facilities management helps lower its financial risk and provides student housing structures that are market-competitive, attentive to students’ maintenance requests and meet other important university objectives.
The Future of Student Housing
As students decide where to attend college, the importance of housing continues to be a key factor. The living experience on and off campus is an essential part of college life, and institutions that fail to address these needs will be less competitive over time.
It is imperative that colleges and universities address their student housing challenges to attract and retain their student population long-term—whether that be through new developments or renovations.
Removing the financial and logistical barriers to student housing via private partnerships enables colleges and universities to provide an intentional and thoughtful housing product, and focus on their core competency: education.
