Moving to Convenient Locations
Many of the nation's schools are facing unexpected demand for on campus housing. Students are moving back on campus to avoid commuting costs and increases in other cost of living expenses that are magnified by living in off campus apartments.
In my morning Google alert for off campus apartments, 3 of the top 4 stories were from schools trying to figure out where they are going to put their students. Screenshot below:
Adelphi University in Long Island is offering students $2,000 to relinquish their dorm rooms as a way to free up some space.
For many students, the cheaper costs of living in off campus apartments have become negated by rising energy and food prices; consequently, paying more for a cramped dorm room has become more desirable than paying less for a spacious apartment away from campus.
Typically, the draw for off campus apartments is that you can save a thousand or more dollars per year and get a lot more for your money, including, but not limited to: 12 months instead of 8, no roommates instead of 2, a queen bed instead of a bunk, additional rooms instead of none and your own bathroom.
For many college students the amount of money that they can save by living in an off campus apartment is no longer worth the trouble of being a student with a commute and paying utilities and other costs such as food.
Demographic Inversion
We have seen the same kind of trend in the real estate market. Renters are moving downtown to be closer to the areas that they frequent and cut the costs of their commutes. This is evidenced by the disproportionate rent increases in downtown areas. Downtown San Diego apartments have already jumped 15 percent in the last year.
In a detailed a somewhat longer article from The New Republic, Alan Ehrenhalt discusses the trend of demographic inversion, citing examples of how people are moving out of the suburbs and back into city centers.
The trend has been noticeable in the past 10-20 years but is now more acute due to rising energy costs as well as a variety of other reasons. The author argues that it is mostly due to the younger generation's system of values that is conducive to urban living.
We can barely scratch the surface of the article here, but it is well worth reading. The trends the author discusses are indeed noticeable across many cities and will have an impact on the real estate market and especially the market for apartments for rent.
Where do you live?
Let us know how far your commute is in the comments.
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