Summary of Key Points
Some universities have started to purchase or lease existing off-campus housing to address the shortage of on-campus accommodation due to a large number of students, outdated facilities, and long construction periods or lack of available land. This approach not only solves the immediate housing crisis for the universities but also helps cities deal with their surplus housing stock, while receiving policy support. At the same time, universities are also working on building new or renovating existing dormitories to comprehensively address the accommodation issue.
Why Do Universities Look for Off-Campus Accommodation?
The shortage of university accommodation is not a new problem, but it has become more prominent recently:
1. Increase in Student Population: University enrollments have risen sharply in recent decades, outpacing the construction of new dormitories, resulting in a significant shortage of beds.
2. Difficulty in Building New Dormitories on Campus: There may be no available land (for example, the Yuehai Campus of Shenzhen University is located in the city center where land is expensive), or the construction process can be very time-consuming (it may take 1-2 years or longer to build a new dormitory building).
3. Outdated Dormitories: Many existing dormitories are old and overcrowded, lacking private bathrooms and air conditioning, which students complain about, and universities have limited space for renovations.
Therefore, purchasing or leasing existing off-campus housing has become a quick solution to the problem.
Buying vs. Renting: What Do Universities Choose?
There are two main ways for universities to address accommodation needs, each with its own advantages and disadvantages:
1. **Buying**: A one-time large investment but long-term cost savings
- Examples: Shenzhen University spent 530 million yuan to purchase an entire apartment building (located within 8 kilometers of the campus and capable of accommodating 1,500 people); Hubei University purchased 352 units; Nanhua University purchased 936 units (covering 72,000 square meters).
- Advantages: The purchased property becomes part of the university's assets, eliminating the need to pay rent annually; the housing is ready for use immediately after renovation; in some areas, buying may be cheaper than building new dormitories.
- Disadvantages: It requires a significant upfront investment, putting pressure on the university's budget; finding a suitable building or sufficient number of units can be challenging.
2. **Renting**: More flexible and affordable, but with ongoing costs
- Examples: Shenzhen University rented 260 units for graduate students; Zhengzhou University rented properties in the surrounding area (with a budget of 45 million yuan); Zhejiang University and China University of Political Science and Law are also renting housing.
- Advantages: No need for a large upfront payment, reducing financial pressure; more flexible options for short-term use; suitable for temporarily filling accommodation gaps.
- Disadvantages: Rental costs add up over time; the property does not belong to the university, which could be problematic if the landlord decides to repossess it.
This Move Has Been a Great Help to the Real Estate Market
Many cities are facing difficulties in selling off surplus housing, and universities' purchases and rentals have a mutual benefit:
1. Reduction of Surplus Housing: For example, Hengyang City encouraged Nanhua University to purchase 936 units, which not only solved the students' accommodation problem but also helped reduce local housing inventory.
2. Recycling of Resources: These properties would otherwise remain unused; converting them into dormitories prevents waste. Experts suggest this model can be extended to other types of housing, such as affordable apartments and elderly care facilities.
3. In Line with Policy: The National Development and Reform Commission encourages universities to purchase or rent nearby residential properties, which is part of a new approach to real estate development (supply-side optimization).
Policy and Expert Opinions
- Policy Support: In 2024, the government explicitly stated its support for universities to buy and rent nearby talent apartments and mixed-use buildings for dormitory purposes, with requirements such as meeting safety and amenities standards.
- Expert Recognition: Experts like Niu Fengrui (Director of the Small and Medium City Research Institute) believe this is an effective way to address accommodation needs, but they recommend choosing properties that are close to the university and easy to renovate. Zhang Bo also agrees that this approach helps optimize resource allocation and promotes urban renewal.
However, experts warn that buying or renting is only a temporary solution; in the long term, universities need to continue building new dormitories (for example, Central South University spent 760 million yuan on new dormitory construction, which will be completed by 2027) to fundamentally solve the issue.
What Else Are Universities Doing?
In addition to buying and renting off-campus housing, many universities are investing in internal upgrades:
- Building New Dormitories: Central South University is spending 760 million yuan on two phases of new dormitory construction (120,000 square meters), with completion scheduled for 2027.
- Renovating Existing Dormitories: Many schools are upgrading old dormitories by installing air conditioning and private bathrooms to improve living conditions.
While these measures take time, they will ultimately increase the supply of dormitory space and enhance students' living experiences.
In Conclusion
Purchasing or renting off-campus housing is a temporary solution that addresses immediate accommodation needs and helps reduce housing inventory. Building and renovating new dormitories, on the other hand, provides a long-term solution. A combination of both approaches will ensure that university students have better living conditions.