Student Housing’s Future Jul12

Student Housing’s Future...

This year’s student housing boom has opened the floodgates for innovation and creativity. Many recent and upcoming projects share common characteristics, paving the way for industry trends that will hold strong well beyond the coming year. Growing Upward This year, land prices have risen in major markets worldwide. Zelman and Associates reported that US land values raised an average of 13 percent in 2012; that growth has continued well into 2013. Even agricultural land prices have risen 15 percent according to The Federal Reserve Bank of Chicago. And as space adjacent to campuses becomes scarcer, renters can expect to see an increase of taller housing structures rather than extensive complexes, particularly near urban and infill campuses. The recent return of vigor to the housing market has resulted in a lumber shortage, markedly driving up building costs. In an increasing number of cases, the cost of wood frames is nearing that of steel within 5 percent. If these conditions continue, builders may be even more motivated to pursue taller, land-conservative steel framed buildings, especially in urban cores. The trend already has a solid foundation. University of Michigan students were greeted with high-rise accommodations on Southern University Avenue last year. 33-story The Grove at Cira Centre South is slated to sprout up near University Center, Philadelphia in coming months. University of Arizona opened a student housing high rise last year and will soon add another to the Tucson skyline next year. Sustainable Here to Stay The green living trend has sustained itself, finding its key supporters amongst youth and young adults. To appeal to coming generations, student housing developments have come to the forefront of green building, catering to an audience that expects sustainability as a standard rather than a niche luxury. Many projects in the...