City University of New York
Student Housing Market Studies
In August 2007, the City University of New York ("CUNY") engaged Brailsford & Dunlavey to prepare a student housing market study for four of its Manhattan colleges: Baruch College, The Graduate Center, Hunter College, and John Jay College of Criminal Justice. The focus of the study was to assess demand for CUNY-sponsored residential living options in Manhattan, Brooklyn, and Queens.
B&D's market analysis consisted of a series of comprehensive tasks:
- A review of student housing facilities in Manhattan offered by Manhattan-based universities and colleges
- An analysis of non-university-affiliated, private sector rental housing in relevant areas in Manhattan, Brooklyn, and Queens
- A survey of students at the subject colleges to assess their current living conditions and preferences regarding potential CUNY-sponsored housing
- A demand analysis to determine the specific number of beds to be provided for each of the participating colleges
- A financial analysis to establish rental price points within the context of both capital and operating costs of a residential life facility in the New York City market
Throughout its research, B&D discovered
many unique facets to this
market, such as how students tended to select
CUNY housing locations
based on where they currently lived, rather
than based on their
proximity to the college--a very unique
characteristic among U.S.
students.
In its final report, B&D recommended that the four subject colleges pursue residential life programs in specific New York-area locations. In addition, the data suggested that the development of a new residential facility at CUNY could be implemented in one of two ways: As a joint effort by two or more of the surveyed colleges, or as an individual effort by one of the participating colleges. The latter approach would be more aggressive due to the smaller size of the target population, but still would be feasible due to the potential capture rates.
In addition, B&D determined that the acceptable rental rates would generate a site acquisition budget unlikely to be sufficient in New York City's student-desired neighborhoods; this result, in turn, would necessitate an alternative financing strategy including, but not limited to, a master lease agreement or private equity participation.