Innovative Solutions for Student Housing Challenges

Andy Barfield

Across the board, the U.S. higher education system is no stranger to challenges. These include rising tuition, student debt, and the “enrollment cliff” that some experts predict will mean fewer students attending college in the near future. For developers of student housing, the main issue is how to provide attractive, comfortable, and high-value living accommodations for students, whether on campus or near campus. Increases in inflation since the pandemic have meant rising costs for constructing and maintaining new student housing developments. Students also have more options than ever before for where to live, and parents expect to receive good value for their housing dollar.

As a developer and manager of more than 3,000 beds in student housing projects throughout the Southeast, including at the University of South Carolina and Auburn University, Holder Properties has seen these challenges firsthand and tested innovative solutions to mitigate these challenges across our projects.

One challenge that we’re continuing to see in building student housing is the ongoing increase in the cost of materials and labor due to inflation, as well as delays caused by labor and material shortages. While the inflation rate across the U.S. economy may now be normalizing in the 3-4 percent range, according to recent U.S. Bureau of Labor Statistics data, inputs to construction still remain 38 percent higher today since the start of the pandemic. There’s little that developers can do to change these macroeconomic trends, so we must be creative in the face of challenges.

At Gateway 737, a 940-bed mixed-use student housing project near the University of South Carolina, we’ve embraced modular construction to keep costs down and meet our fall 2025 delivery timeline. Modular construction means crafting as much of the building as possible in a manufacturing plant, then shipping it to the site and erecting it there, rather than the traditional model of constructing everything from scratch on-site.

Thanks to this approach, on-site labor needs are more predictable, and the impact of extreme weather events on construction timelines can be better managed. At Gateway 737, more than 1,600 precast concrete panels will have been installed (across 11 floors) in less than four months since work began. Plus, the final product is an attractive, high-quality building that will provide first class housing for many decades. We expect the use of modular design and construction  to increase exponentially  in the years to come.

Keeping beds full

Another challenge is the need to entice students (and their parents), who will be making a significant financial investment by attending college and will have high expectations for their living situation. Part of the answer is to focus on what students both need and want, which is to provide a high level of  privacy and safety. Our buildings, including the parking components, are secured and our staff is on site. Our units generally have bed-to-bath parity, giving today’s students a level of comfort that enables them to focus on their studies.

Then, we turn our attention to incorporating premier amenities that improve students’ quality of life. We’ve found that high-end fitness equipment, such as Peloton bikes and HIIT circuit training equipment on-site, can be a significant benefit for students seeking to balance their studies with fitness and wellbeing. Students looking to express their creativity online or build their individual brands also appreciate having access to high-speed internet access, as well as social media and tech rooms in their building (another amenity we’ve started to include) where they can easily record and post content to social media platforms.

Lastly, meeting the increasing demand for high-quality off-campus student housing requires taking the long-term perspective, while also seeking insights into what students truly value about their living situation. Despite projections that enrollments could level off in the coming years, we’re still seeing freshman class sizes increase among our university partners. This is a good problem to have, though it means finding more space for those additional freshmen, who will likely seek off-campus housing as their college careers progress.

We’ve found that it isn’t just about the number of square feet per room. In fact, devoting more square footage to amenities and shared spaces, even while increasing a building’s density to accommodate more students, can be a net positive. Students don’t just want a big bedroom; they need to get out of their individual spaces and engage with friends and peers to truly thrive. Amenities like ample study rooms, outdoor courtyards, walkable dining options, and convenient access to campus are the backbone of today’s college experience.

While navigating uncertain economic headwinds, rising costs, and emerging trends in student housing is a challenge, it isn’t insurmountable. By working with academic partners and local governments—and being smart about the wants, needs, and budgets of families—student housing developers can provide high-quality living options that deliver on the promise of the college experience.

Andy Barfield is managing director and head of Development for Holder Properties, a full-service commercial and residential real estate development and investment company with student housing projects throughout the Southeast.