Industry News

College-town property rents increase

Study: Conventional apartments struggled while student housing rates climbed

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Rents at student housing properties increased during a difficult two-year period for conventional apartments, according to a new research report by the National Multi Housing Council, a Washington, D.C.-based industry trade group. The report, which examines rent growth in 64 college towns during 2004-2006, finds that at a time when conventional apartment properties were struggling with concessions and lower effective rents, many properties targeting students were posting rent gains.  The median rent growth rate between 2004 and 2006 across median rates for all unit types studied (e.g., studio; one-bedroom, one-bath; three-bedroom, two-bath) was 7 percent. This exceeded the 6.5 percent growth rate in rents measured by the Consumer Price Index during the same period.  Other findings in the report included:  Units with three or more bedrooms tended to have the highest median growth rates from year to year, ranging from 9 percent to 13 percent. The areas with the h...