UNIVERSITY OF HOUSTON STUDENT HOUSING MASTER PLAN UPDATE Board of Regents Meeting March 8, 2018 1 P R OJ E C T O B J E C T I V E S Student Housing Master Plan Update 1. CONDUCT A COMPREHENSIVE MARKET ANALYSIS 2. QUANTIFY DEMAND FOR ON-CAMPUS HOUSING 3. DEVELOP A PLAN FOR HOUSING THAT SUPPORTS THE UNIVERSITY’S STRATEGIC OBJECTIVES 2 PROCESS Student Housing Master Plan Update VISIONING Strategic Asset Value Analysis Demographic Analysis MARKET ANALYSIS Interviews & Focus Groups Existing Conditions Analysis Off-Campus Market Analysis DEMAND ANALYSIS • 20+ Focus Group Participants • 1,200 Survey Respondents • 40,000 Multifamily units researched Survey Analysis Demand-Based Program Concept Development STRATEGIC PLAN Financial Analysis I M P L E M E N TA B L E P R O J E C T S Project Phasing 3 KEY FINDINGS Student Housing Master Plan Update 1. THE ACADEMIC PROFILE OF THE UH STUDENT HAS INCREASED ALLOWING THE UNIVERSITY TO QUICKLY MEET THE OBJECTIVES OF THE STRATEGIC PLAN 2. UH’S INVESTMENTS IN STUDENT LIFE INFRASTRUCTURE HAVE DRAMATICALLY CHANGED THE NATURE OF CAMPUS LIFE 3. RESIDENCE LIFE IS WELL POSITIONED FOR THE FUTURE 4. UH’S GROWTH HAS ATTRACTED THE DEVELOPMENT COMMUNITY WHICH HAS INVESTED HEAVILY IN THE OFF-CAMPUS MARKET 5. UH MUST COMPLETE ITS HOUSING MASTER PLAN TO RETAIN ITS COMPETITIVE ADVANTAGE 4 S T R O N G E N R O L L M E N T G R OW T H 28,056 29,378 30,452 31,364 30,488 31,722 2008 2009 2010 2011 2012 2013 2014 34,688 27,602 2007 33,402 26,495 20,000 9,086 9,192 9,140 9,380 9,368 9,374 8,944 8,502 30,000 8,168 40,000 9,300 Student Housing Master Plan Update 2015 2016 10,000 • Overall enrollment increased by 26% since Fall 2007 and 7% since Fall 2011 • Undergraduate population increased by 31% since Fall 2007 and 11% since Fall 2011 0 Undergraduate Graduate 5 CHANGING DEMOGRAPHIC PROFILE Student Housing Master Plan Update 6% 13% 46% Average composite SAT score increase since 2013. more FTIC students from 10th percentile in High School standing since 2012 more FTIC students live on campus since Fall 2012. 6 KEY FINDINGS Student Housing Master Plan Update 1. THE ACADEMIC PROFILE OF THE UH STUDENT HAS INCREASED ALLOWING THE UNIVERSITY TO QUICKLY MEET THE OBJECTIVES OF THE STRATEGIC PLAN 2. UH’S INVESTMENTS IN STUDENT LIFE INFRASTRUCTURE HAVE DRAMATICALLY CHANGED THE NATURE OF CAMPUS LIFE 3. RESIDENCE LIFE IS WELL POSITIONED FOR THE FUTURE 4. UH’S GROWTH HAS ATTRACTED THE DEVELOPMENT COMMUNITY WHICH HAS INVESTED HEAVILY IN THE OFF-CAMPUS MARKET 5. UH MUST COMPLETE ITS HOUSING MASTER PLAN TO RETAIN ITS COMPETITIVE ADVANTAGE 7 INVESTMENT IN STUDENT LIFE Student Housing Master Plan Update Campus Recreation $15 M Campus Dining $9.3 M $330M+ Student Center $80 M in Student Life investment since 2012 On-Campus Housing $100 M TDECU Stadium $128 M 8 I N C R E A S E D S T U D E N T I N VO LV E M E N T Student Housing Master Plan Update 15 NCAA Varsity Sports Greek life participation increased 60% since 2009 520+ Student Athletes Over 500 organizations & clubs 800+ events annually 9 KEY FINDINGS Student Housing Master Plan Update 1. THE ACADEMIC PROFILE OF THE UH STUDENT HAS INCREASED ALLOWING THE UNIVERSITY TO QUICKLY MEET THE OBJECTIVES OF THE STRATEGIC PLAN 2. UH’S INVESTMENTS IN STUDENT LIFE INFRASTRUCTURE HAVE DRAMATICALLY CHANGED THE NATURE OF CAMPUS LIFE 3. RESIDENCE LIFE IS WELL POSITIONED FOR THE FUTURE 4. UH’S GROWTH HAS ATTRACTED THE DEVELOPMENT COMMUNITY WHICH HAS INVESTED HEAVILY IN THE OFF-CAMPUS MARKET 5. UH MUST COMPLETE ITS HOUSING MASTER PLAN TO RETAIN ITS COMPETITIVE ADVANTAGE 10 I M P O R TA N C E O F H O U S I N G I N D E C I S I O N TO AT T E N D U H Student Housing Master Plan Update 90% 60% 80% 70% of all respondents considered availability oncampus housing as an important decision factor to attend UH. 60% 50% 40% 30% 21% 20% 10% 0% All Lived On-campus Never on Campus Increase from 2012 survey 11 OCCUPANCY HAS STABILIZED Student Housing Master Plan Update 98HOUSTON BRAILSFORD DUNLAVEY HISTORICAL OCCUPANCY 95% 97% 989$ 9896 S T R O N G O N - C A M P U S R E T E N T I O N R AT E S Student Housing Master Plan Update RENTENTION WITH PARTNERSHIP PROPERTIES Class Year Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 Freshman 1,976 1,973 2,389 2,406 2,421 Sophomore 1,409 1,489 1,429 1,732 1,733 Junior 1,011 1,083 1,258 1,152 1,313 Senior 642 802 1000 1,172 1,135 Total 5,038 5,347 6,076 6,462 6,602 Class Year Freshman Fall 2013 Fall 2014 Fall 2015 Fall 2016 Average - - - - - Sophomore 75% 72% 72% 72% 73% Junior 77% 84% 81% 76% 79% Senior 79% 92% 93% 99% 91% Year over year retention is typically 50% per class level for institutions similar to UH. 13 KEY FINDINGS Student Housing Master Plan Update 1. THE ACADEMIC PROFILE OF THE UH STUDENT HAS INCREASED ALLOWING THE UNIVERSITY TO QUICKLY MEET THE OBJECTIVES OF THE STRATEGIC PLAN 2. UH’S INVESTMENTS IN STUDENT LIFE INFRASTRUCTURE HAVE DRAMATICALLY CHANGED THE NATURE OF CAMPUS LIFE 3. RESIDENCE LIFE IS WELL POSITIONED FOR THE FUTURE 4. UH’S GROWTH HAS ATTRACTED THE DEVELOPMENT COMMUNITY WHICH HAS INVESTED HEAVILY IN THE OFF-CAMPUS MARKET 5. UH MUST COMPLETE ITS HOUSING MASTER PLAN TO RETAIN ITS COMPETITIVE ADVANTAGE 14 I N T R O D U C T I O N O F P U R P O S E - B U I LT H O U S I N G I N T H E U H M A R K E T Student Housing Master Plan Update 2,278 Purpose-built beds delivered since 2011 $864 + $103 $967 Average Personal Monthly Rent Average Personal Monthly Utilities CAMPUS VUE GATEWAY ON CULLEN SAVOY STUDENT APARTMENTS VUE ON MACGREGGOR Average Personal Monthly Cost of Housing ASPEN HEIGHTS Source: CoStar 2017 15 KEY FINDINGS Student Housing Master Plan Update 1. THE ACADEMIC PROFILE OF THE UH STUDENT HAS INCREASED ALLOWING THE UNIVERSITY TO QUICKLY MEET THE OBJECTIVES OF THE STRATEGIC PLAN 2. UH’S INVESTMENTS IN STUDENT LIFE INFRASTRUCTURE HAVE DRAMATICALLY CHANGED THE NATURE OF CAMPUS LIFE 3. RESIDENCE LIFE IS WELL POSITIONED FOR THE FUTURE 4. UH’S GROWTH HAS ATTRACTED THE DEVELOPMENT COMMUNITY WHICH HAS INVESTED HEAVILY IN THE OFF-CAMPUS MARKET 5. UH MUST COMPLETE ITS HOUSING MASTER PLAN TO RETAIN ITS COMPETITIVE ADVANTAGE 16 P R OJ E C T E D D E M A N D Student Housing Master Plan Update • OFF-CAMPUS HAS ABSORBED SOME OF 2012 DEMAND • CURRENT MARKET DEMAND FOR 9,140 BEDS FOR FALL 2016. (793 NET NEW) • Significant demand across all classification levels • 2,241 FTIC RESIDENTS (52.56% CAPTURE) Demand Comparison Total Enrollment Total Demand Capture Rate 2012 39,820 7,878 20% 2016 43,774 9,140 21% Supply Net New Demand 6,007 1,871 8,347 793 • To obtain goal of 60% FTIC capture: • Need to attract 440 new FTIC residents • Requires capturing students who live at home with parents Conservative demand projections to mitigate risk to the university 17 R E C O M M E N DAT I O N S U M M A RY Student Housing Master Plan Update 1 2 3 4 NEW FIRST-YEAR HOUSING (REPLACE MOODY) - Existing Moody site - Existing surroundings UPPER CLASS APARTMENTS - Leverage housing corridor - Existing parking lots GRADUATE / PROFESSIONAL HOUSING - Dedicate Floor or Wing in Existing University Lofts - Other surrounding parking lots 3 2 1 3 4 IMPROVED GREEK HOUSING - Existing Bayou Oaks location - Other surrounding locations * *MacGregor property is also under consideration for additional housing options. 18 P R OJ E C T P H A S I N G 2019 - 2020 2022 2024 PROJECT Quads Replacement Moody Replacement New Upper Class / Graduate / Professional BED COUNT Student Housing Master Plan Update 1,189 Beds (328 net new) 1,200 Beds 800 Beds (all net new) 2024 Greek Housing Renovation 220 Beds 19 UNIVERSITY OF HOUSTON STUDENT HOUSING MASTER PLAN UPDATE Board of Regents Meeting March 8, 2018 20