The Real Reason College Dorms Have Gotten So Expensive

The Nugget

The rising costs of college dormitory housing are not just due to inflation or the housing market but are also driven by universities making a profit through partnerships with private developers.

Key quotes

"The revenue brought in by housing surpassed maintenance costs by at least $17 million in each of the past five years."
"The price of housing grew at a higher rate than tuition in many schools."
"The students, however, get the short end of the stick because the contractors get to set the rates at these properties."
"Universities are not required to track expenses in any uniform way, making it difficult to hold them accountable for how they're spending their money."
"Even publicly funded state colleges are becoming more out of reach for the average American."

College dorm costs have significantly increased over the years, not just due to inflation or the housing market, but also because universities are making a profit through housing.
The modern trend includes luxury amenities like queen-sized beds, private bathrooms, granite countertops, and rooftop terraces, driving up costs.

To address housing shortages and reduce costs, universities have been partnering with private developers who handle construction, management, and pricing of dormitories.
Schools lease their land to developers, who then manage the properties and receive most of the revenue, with a portion going back to the university.

Colleges are not required to track expenses uniformly, making it challenging to hold them accountable for how they spend money.
This lack of transparency raises concerns about the affordability of higher education, even at publicly funded state colleges.

💸 Private developers handle construction and pricing of dorms in partnerships with universities.
🏢 Colleges are not required to track expenses uniformly, leading to challenges in financial accountability.
📈 Dorm costs have outpaced tuition increases in many schools, impacting the affordability of higher education.
🏫 Luxury amenities in college dorms contribute to skyrocketing costs, affecting students' financial burden.

This summary contains AI-generated information and may have important inaccuracies or omissions.