As students rush to finalize living arrangements for the next academic year, renter frugality and new trends in campus living are forcing some realty companies to alter their market strategies.
Mark Patmore, owner of Mercia Residential Properties, said students are trying to find ways to reduce individual costs much more than in the past.
“I have had to work much harder than in previous years,” Patmore said. “Students are sharing more. That two-bedroom house now has three people in it to help each person cut back on rents a little.”
In a University town apartments are designed to meet students’ needs — and these needs often lead to higher rents, said Adam Brown, treasurer of the Greater Chapel Hill Association of Realtors and property manager of Louise Beck Properties.
“When you have people sharing the costs of the assets, such as roommates, landlords can charge more in aggregate for a student property,” he said.
Deciding what to charge
Brown said the college real estate market allows landlords to have broader discretion when determining the cost of rent.
“In a college town, you have a different and almost mutually exclusive market from a non-student area,” he said. “The product is different, and once the demand is there you also see that product is priced differently.”
Town House Apartments and The Warehouse both have rent increases budgeted for next year.