CASE STUDY: US STUDENT HOUSING & PUBLIC-PRIVATE PARTNERSHIPS 1
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For students, high-quality on-campus housing offers a host of benefits and has been found to support higher grade point averages and graduation rates. However, many university campuses across the US lack sufficient housing for the communities that they serve, with many students facing unaffordable prices and outdated on-campus buildings. From 2013-2020, the average rent per bed increased by around 25% for dedicated student housing in the US, outpacing tuition increases and representing a significant financial burden for many students and families. The limited supply of housing is a major factor in rent increases—a problem that Greystar aims to help universities solve. Many of our university housing projects are public-private partnerships (P3s). Public entities such as state universities leverage Greystar’s decades of residential development and property management expertise to improve efficiency, lower costs, and substantially expand the number of beds available on-campus. We work with university partners to determine the most suitable financing structure to balance student affordability, long-term cost of capital, and impact on institutional credit. Opportunities in the student housing sector can benefit from ongoing student demand, access to university land, and proximity to campus and transportation options that can reduce construction costs. These partnerships allow Greystar and university partners to develop thoughtfully designed student communities while keeping rent increases low over time. In addition, we help university partners achieve environmental sustainability goals, delivering 40+ LEED certified communities since 2004. Our partnerships also include Historically Black Colleges and Universities (HBCUs) and Hispanic-Serving Institutions (HSIs), helping universities meet their mission of expanding college access to all student groups.
One of our longstanding partnerships is with the University of Kentucky. Since 2011, Greystar has developed and now manages 6,850 beds or ~95% of the on-campus housing. Through our partnership, the University has added an Honors College, study rooms, and classrooms within the new residence halls, bringing academics directly into students’ living areas. The proximity to their educational resources has translated into tangible impacts on academic performance, with students in living- learning centers on-campus reporting 25% higher GPAs and 10% higher student retention compared to off-campus students. At the same time, off-campus housing prices have outpaced Greystar-managed residences. For instance, studio units at the University of Kentucky offer rents 15.8% lower than the market average for similar units off-campus, meaning that students do not have to choose between proximity and affordability. We continue to innovate on our housing solutions to meet university communities’ needs, such as day care facilities for graduate students, attainable housing for university staff, and units set aside for housing insecurity scholarships. With over 10,000 additional beds set to be delivered across the US through 2028 and more developments in the pipeline, we look forward to continuing to expand the supply of high-quality on-campus student housing across the country.
Greystar is a leading provider of on-and off-campus housing solutions, helping universities globally provide housing to undergraduate and graduate students,
Lewis Hall University of Kentucky
faculty, staff, and alumni.
70+ ON-CAMPUS PROPERTIES DEVELOPMENT 101k+ STUDENT BEDS MANAGED ON & OFF CAMPUS WOLRDWIDE 60+ P3 PROJECTS FINANCED & EXECUTED FROM 2000-2024
1 These examples are for illustrative purposes only. It should not be expected that Greystar will always implement similar sustainability processes or that comparable results will consistently be obtained.
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