by: Rachel Epstein

A recent survey uncovered that 43% of students at four-year colleges in the United States grappled with housing insecurity in the year leading up to the study, an increase of over 100% since 2022 (Benbow, 2023.) This troubling trend is forcing many students to couchsurf with friends or commute from home to attend school. In response to this challenge, the University of San Diego turned to a temporary solution by placing students in hotel rooms due to a shortage of on-campus housing (Staff, 2023). The aforementioned solution has been seen at the University of Miami and other campuses as well. This predicament has been intensified by a 9% surge in student housing demand over the past year (Staff, 2023). To address the escalating housing crisis, micro-construction is emerging as a solution, offering compact living units that provide individuals with personal space while accommodating more occupants within a single building, thus alleviating the strain on student housing.

Micro units are smaller efficient units usually ranging from 100-200 square feet which are priced at a lower cost. These units include kitchenettes, bathrooms, and a small study space. A few other benefits of the buildings are fitness centers, game rooms, meeting spaces, and storage lockers. The buildings will incorporate larger common space for students to socialize and study. Internet is also included in the rent for their units which attracts many students to live there. An added bonus is that the units come fully furnished so one does not have to worry about purchasing furniture. As stated in the article, “… murphy beds that transform into desks”(Interactive, 2022) so the room can be transformed within minutes as one pleases. This allows individuals to have their own personal space when wanted but also gives them the opportunity to be with their friends. The emphasis on these small units genuinely represent the current generation and their need for personal space but also wanting to have time with friends.

The rent for micro-units could be significantly less expensive “…students in Vancouver can rent a 140 square foot unit for $675-$695 a month, as compared to $1,000 for a full-size unit” (Interactive, 2022). The price difference is significant enough that it can be the reason one attends school or not.  This will certainly attract students to live in these units because they could have their own space and privacy but also be able to spend time with their friends whenever they want. 

Historically, regular apartments were about 800 square feet with four bedrooms with one to two students per bedroom. The units came with a full kitchen and bathroom but the buildings had limited study and communal spaces. Students could not enjoy spending time in their apartment with all their friends. Most of the time they would have to find another location for everyone to be together. Lenders and investors are interested in these spaces because of the future micro-housing holds. 

At Lever Capital Partners we are dedicated to remaining well-informed about the evolving market for modular housing construction in the Student Housing space by diligently tracking industry trends and staying ahead of developments. Our approach involves collaborating with lenders known for their reliability, ensuring that clients receive the best possible financing solutions for their projects.

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