Residence-Hall Market Sees Rising Demand and Falling Construction Prices

Many colleges have seen demand for residence-hall rooms increase in recent years — particularly if the institution’s dormitories offer the kind of high-end amenities that show well on admissions tours. For institutions that can afford to build now, sinking construction costs make this an opportune time to replace old dormitories or put up new ones.

The Pittsburgh Tribune-Review reports that five Pennsylvania state universities in the western part of the state have sparked a “mini-boom” with $666-million worth of residence-hall construction. Indiana University of Pennsylvania alone is building nine new dorms that are expected to cost $270-million. Along with private colleges in the region, the state universities are replacing traditional double-room-shared-bath facilities with apartment-style buildings.

At the University of Georgia, meanwhile, the drop in building costs means that university officials can substitute a steel frame for wood in a new 500-bed, $37-million residence hall, assuring that the building will have a much longer life span, according to the Athens Banner-Herald. The price drop also means the university can add an extra 50 rooms in the attic story and can afford to buy costly high-efficiency heating and air-conditioning equipment that will reduce energy use by between a fifth and a quarter.