that high-density, small, shared bedroom, cinder block construction is no longer what today’s student is looking for in their col- lege experience. This will present a unique opportunity for private on- and off-campus housing providers to help schools meet those new demands.”
To deal with the rapidly changing pres- ent, Core Spaces also is trying to blend in soft skill tools to help its residents cope. “We’ve learned that students are feeling the stress of the pandemic,” says Modleski. “We’ve re- sponded by connecting our residents with the resources that can directly help them navigate these trying times, such as tools for emotional growth and well-being, including meditation workshops and self-management events de- signed to help students stay grounded.”
ECON 101 Despite the challenges, there is strong
sentiment that the business of developing, building and investing in student housing is still a good bet. “Student housing has once again proven to be a wise hedge against an economic downturn,” Modleski says. “We expect that the long-term trend in the sector to remain strong post-COVID-19. Occupancies
for 20-21 are relatively in line with those the year prior and collections also remain very strong despite the volatility in the economy. The demand for student housing will continue to grow and international students who may have had difficulties obtaining a visa or traveling to the United States will vigorously return.” Oltersdorf does have some concerns about the future of financ-
ing. “Off campus, we have already seen the agencies start to steer away from student housing,” he says. “If they do not step back in and no other private market steps up within the next 12 months, we could see valuations decline in student housing.” Oltersdorf is also envisioning a move away from publicly funded
builds. “We believe the pandemic will accelerate the dedensifica- tion and privatization of on-campus housing moving forward which should be a net benefit to the off-campus student housing market as well as provide development opportunities on-campus.” Oltersdorf cites signs of contraction in the market as evidenced by Johnston and Wales selling off an entire campus in Miami and the state systems of Pennsylvania and Wisconsin announcing strategic plans to eliminate the number of branch campuses. But the prospect of the pandemic causing a pivot to total online learning seems dim. “I believe there will continue to be adjustments in what is per-
ceived as a traditional higher education experience,” says Oltersdorf. “I believe you will continue to see hybrid, in-person and fully online experiences, but I don’t see the face-to-face experience going away. America’s rich tradition of higher education has a foundation that I believe will continue to evolve. We are hearing and seeing that students want the full college experience of living on their own, meeting new people and exploring who they are within a new en- vironment away from mom and dad.” Pierce agrees. “If anything, the pandemic has reinforced the value of and desire for a residential education,” he says. “A college
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education is about way more than classroom learning. It is about growing up as a young adult, making life-long friendships, living on one’s own, attending college sporting events and, yes, having fun. Those students who went home in the spring couldn’t wait to get back to school and did in huge volumes this fall even if 100% of their fall courses were online. Surveys have also indicated that two-thirds of college students find online courses inferior to class- room instruction.”
“As an industry, we’ve been answering this question for a few
years, and we believe that the pandemic has proven that online education is not a threat to the traditional higher education and by extension, off-campus student housing model,” says Petersen. “Throughout our portfolio, we have found that students come to school to learn, but that they also come for the college experience. This is evidenced by the fact that several of our markets are provid- ing instruction almost completely online, and yet our properties in those markets remain near full occupancy.” Modleski espouses the same viewpoint. “While I believe that
everyone appreciates the convenience of more things becoming virtual and accessible from their home, we’ve found that students want to get back to in-person classes,” he says. “We polled our residents across the country and had over 1,500 responses. Over 65 percent said their experience of online learning is less than positive with 92.36 percent of the respondents said they want to come back to campus. And even if school was all virtual, 87.4 percent want to live in a university town. This data is telling us that there is no replacement for the college experience They want social interac- tion with friends and community involvement and we’re thankful to provide a place for them to do so.”
Scott Sowers is a freelance writer.
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