A Hedonic Model for Off-Campus Student Housing: The Value of Proximity to Campus

Authors:
  • TFTerry J. Fields
    Terry J. Fields
  • CECarla Earhart
    Carla Earhart
  • TLTung Liu
    Tung Liu
  • HCHoward Campbell
    Howard Campbell
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Abstract
This paper presents a hedonic model for off-campus student housing. Implicit values for select structural and locational characteristics were estimated, with a special emphasis on proximity to campus. Variable data for six university markets were collected with results indicating a nonlinear relationship between rent and distance from the academic center of campus. Within one mile of campus, there was a significant premium for proximity (16.3%), but between one and four miles from campus, the marginal value leveled off before decreasing again beyond the four mile mark (13% discount). This study adds to a limited collection of student housing research for today’s investors and developers making multi-million dollar decisions.