Contributing Author: Sean Lyons
An in-depth analysis of the private student housing market at University of Michigan conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth market research reports on leading Universities in the United States.
Total Enrollment: Up 2.87%
For the second consecutive fall, total enrollment at the University of Michigan’s flagship campus in Ann Arbor grew by more than a thousand, registering 1,284 more students than fall 2016, for a new University record of 46,002. Undergraduate student enrollment increased 2.89%, slightly out pacing the 2.83% growth of graduate and professional students.
Freshman Enrollment: Up 2.36%
The 6,847 first-year students at UM this fall broke the school record of 6,689, which was set last year. The 3 largest freshman classes in the University of Michigan’s 200-year history have been recorded over the past 4 years. Freshman applications were also up 7.85%, indicating that the demand for admittance to one of the world’s premier academic institutions is as high as ever.
International Enrollment: Up 4.26%
International student enrollment increased by 288, for a total of 7,052 foreign students on campus. The continued strength of international enrollment and recruitment across all universities has been cast into doubt with a shifting political landscape but highly esteemed public research universities with strong STEM programs have been able to maintain their momentum.
2017-18 Occupancy: Up 0.25%
Average market occupancy increased from an already robust 98.79% to essentially full capacity 99.04%. Strong enrollment gains and limited new developments has resulted in a 5-year market-wide average occupancy of 98.36%. Even with at least 1,241 beds scheduled to come on line for the 2018-19 AY, the market should remain near-capacity.
Average Rents: Up 3.53%
Average asking rents increased across most unit types, with 2 and 3 bedroom units reporting the largest gains, increasing by 7.93% and 6.89% respectively. The price of a bed in a 4 bedroom unit fell -0.85%, although they still rent for an average of $1,085/bed. The average asking rent for a 1 bedroom apartment is $1,522, up 0.57% year-over-year.
Market Additions – Fall 2017: 0 Beds
There were no significant additions to the inventory of Ann Arbor’s student housing market for the 2017-18 AY.
Expected Market Additions – Fall 2018 & Beyond: +1,241 Beds
The fall of 2018 should see the greatest influx of new off campus housing in the university’s history with 1,241 beds currently under construction. Representing three distinct sub-markets, Hub on Campus will bring 310 beds to Huron Street on the northeast side of campus, Six11 will have 343 beds just off of South University to the southeast and The Yard will forge new ground with 588 beds on the southwest side of campus on Main Street. South University Avenue is undergoing a complete transformation beginning with streetscape improvements this year and bolstered by a flurry of development activity. In addition to Six11 in 2018, two more projects are planned, the 261-bed Collegian North in 2019 and the 166-bed Collegian East in 2020. At least two more projects are in early planning stages in this corridor, not likely to open until 2021 or later. Much further afield, developer Trinitas Ventures is proposing Ann Arbor’s first true commuter garden style student complex, the 716-bed Cottages at Barton Green. The 32-acre site off of Pontiac Trail on the city’s northside some 2.5 miles from campus would truly forge new ground for student housing at the university.
Triad Real Estate Partners™ regularly conducts market research reports on off campus student housing at universities across the United States. We are the only firm providing free in-depth, hands-on reports on individual markets with enrollment trends, construction pipeline data & comprehensive rental & occupancy information. We believe our data is the most reliable in the business. This data is updated on an annual basis & is available for free by registering on our website. Please feel free to contact us to see data on a new or specific market.
For the Complete University of Michigan Student Housing Research Report 2017-18
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