AUBURN, Ala. (AP) - A new analysis shows that there’s still a demand for student housing near the downtown area in Auburn.
The Auburn City Council hired Danter & Associates several years ago. The aim was to learn more about the market potential for student housing amid concerns of overbuilding, The Opelika-Auburn News reported.
The firm’s 2018 updated analysis suggests that there is still a demand for purpose-built student housing, particularly within a walkable distance to the Auburn University campus.
The demand for more student housing in the area is driven by several factors, the recent analysis found. They include the growth in Auburn’s student enrollment and changing tastes and expectations of the student body.
“Vacancy rates for both purpose-built student properties and conventional apartment properties are very low and rental rates have increased consistently indicating a strong demand and limited supply,” Kevin Cowper, city of Auburn assistant city manager, wrote in a memorandum to the city council.
The 225-page study found that there are 3,190 purpose-built student housing units and 8,964 bedrooms in 18 properties in Auburn. The vacancy rate among purpose-built student housing properties is 2.9 percent, which is below the 5.9 percent rate reported in 2015 and the 8.1 percent rate in 2013.
“The 2.9 percent vacancy rate is considered extremely low and would indicate that the market is limited by a lack of supply, rather than lacking demand,” the study states, adding that vacancy rates are lower for newer properties closer to campus.
There are four student housing projects under construction: The Standard, 191 College, Twin Cities and Uncommon Auburn. An additional purpose-built student housing property, The Union, is approved for construction but has not broken ground.
“While there is long-term market capacity to absorb these beds, the new properties will increase the market share of purpose built student housing to a much higher level,” Cowper wrote.
Cowper referenced a number of factors that are contributing to demand for purpose-built student housing: Increased enrollment at Auburn University; socio-economic characteristics of the student population; low supply of on-campus housing options; and a trend toward urban living within walkable distance to campus and in close proximity to downtown.
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Information from: Opelika-Auburn News, http://www.oanow.com/
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