Student Accommodation in USA: A Diverse Landscape Offering Various Options

The United States is one of the best places to study in the world, with some of the world’s leading universities, including UC Berkeley, Stanford University and Harvard University. These universities are known for their academic excellence, cutting-edge research, and a wide range of educational programs. The USA draws students from all over the world, providing a stimulating environment for intellectual development and cultural exchanges. As the number of international and domestic students in the USA continues to grow, so does the need for student housing in residential settings. Cities with world-class universities have been particularly receptive to this trend. Student housing in the region can take the form of dorms, purpose-built student housing ( PBSA), private apartments, homestays and more. PBSA is becoming increasingly popular due to its convenience and services designed for students. For detailed information on the type of student accommodation, you can read our blog on the Diverse Student Housing Types in the USA.
The student housing market in the USA is vibrant and diverse, reflecting the increasing demand for high-quality student housing. As a major contributor to the USA economy, the student housing market is expected to reach significant levels, highlighting its importance in sustaining the educational system. Furthermore, US student housing has seen a surge in investment from domestic and foreign investors, resulting in the development of sophisticated and modern student housing complexes. 

1. US Student Housing Market Size

Student housing is an integral part of any college or university’s student experience. Since students are often not full-time employees, they can benefit from more cost-effective housing options. Furthermore, student housing allows students to socialize and build relationships with their peers in a way that is not possible in typical housing. Because rental housing is in high demand, student accommodation has traditionally been viewed as a profitable investment.

The US student housing market has generated revenue of USD 3.1 Bn in 2023 and is projected to reach USD 4.2 Bn by 2029 with a CAGR of 6.5%.

2. US Student Housing Market Trends

The United States has been a prime destination for students, offering research opportunities, career growth, and social and cultural engagement. Moreover, urban areas have created a demand for student accommodation in cities. Higher education institutions such as universities and colleges have emerged as a result of urban areas. Let’s examine data on the contribution of international students to the United States and associated trends. We can gain a better understanding of the power and advantages of this unique community and what its future may look like.

2.1 Increasing International Students In US

Total international students studying at U.S. colleges and universities in 2022/2023 increased by 12%, according to the Open Doors report by the Institute of International Education (IIE). Total international enrollment stood at 1,057,188, up more than 100,000 students over the 2021-22.

New international students enrolled at U.S. colleges and universities for the first time in 2022/2023 grew by 14% to 298,523 students, a Y-O-Y increase of 80%  in 2021/2022. New international students enrolled in every state and territory of the U.S., and 48 states reported increases in international students.

"Over one million international students studying in the U.S. reflects a strong rebound, with the number approaching pre-pandemic levels. This reinforces that the U.S. remains the destination of choice for international students wishing to study abroad, as it has been for more than a century," said Allan E. Goodman IIE CEO.

Enrollment of international students in the US increased in all academic years of 2022/23. The largest increase was in the number of international students, with 467,027 pursuing Master's, Doctorate, or Professional degrees, which increased by 21% year-on-year. Undergraduate student enrollment increased by 1% in the first semester of 2022/23, the first time increase in 5 years. Furthermore, 198,793 international students enrolled in Optional Practical (OPT) Training, which provides students with practical work experiences after their academic studies.
“Students from around the world are continuing to recognize the United States’ global leadership in higher education, ranging from two-year community colleges to four-year universities and beyond,” says Lee Satterfield, assistant secretary of state for Educational and Cultural Affairs.

2.2. Rapid Development of Cities

The rapid growth of cities has resulted in the development of higher education institutions, such as universities and colleges, in urban areas. As a result, the demand for student accommodation in urban areas has also increased. Students want to stay in accommodation that provides modern amenities, safety and amenities, such as gymnasiums, communal areas and study lounges. 
Urban cities have seen significant population and economic growth, making them the hotspots for educational expansion. With a thriving urban environment, institutions are eager to establish branch campuses to meet the growing demand for higher education services. This trend can be seen in universities opening satellite campuses in fast-growing urban areas. As urban areas continue to develop as cultural and economic centers, the relationship between urban development and the growth of educational institutions reveals a dynamic landscape that shapes the future of US higher education.

• Austin, Texas, is one of the fastest-growing cities in the United States. These cities have seen a dramatic increase in population and economic growth in recent years. Austin is home to a vibrant cultural scene that draws in professionals and students from all over the country. Recognizing the city’s rapid growth, the U.S. Department of Education (USD) has grown its presence in the area, adding to the long-standing relationship between urban growth and educational institutions.
• Moreover, the University of California and Berkeley have also responded to student enrollment fluctuations by establishing new campuses in rapidly growing urban areas. This forward-thinking approach not only preserves California Berkeley’s sustainability but also promotes the growth of these urban hubs.

The year 2023 is shaping up to be a great year for cities and universities in the United States. As cities continue to grow and develop, universities are taking advantage of the opportunity to broaden their reach and offer a variety of educational opportunities.

2.3 Increasing Record Number of Students From India

New international students are flocking into colleges and universities across every state and territory in the U.S., with 48 states reporting an increase in international students. In the 2022-2023 academic year, India had 268,923 students enrolled at colleges and universities, a 35% increase from the previous year. 
“U.S. colleges are committed to making international students feel comfortable,” said Adarsh Khandelwal, an academic advisor and admissions coach based in New Delhi. He also added, "The proactive response to queries, hosting workshops and strong representation in India contributes to the U.S. being a clear leader,” 
The US has some of the best universities and research opportunities in the world, making it a prime destination for Indian students, writes Karan Gupta, who heads Karan Gupta Consulting, an education and career consulting firm in Mumbai. “Engineering, computer science, and business are some of the most sought-after fields,” he adds, noting that the US job market, particularly in the tech and business fields, is highly competitive. 
Currently, about 166,000 students in India are pursuing M.D.s or other advanced degrees in the United States, mostly at universities in California, New York, Texas, Massachusetts, and Illinois. India is currently the second largest student-sending country to the United States, after China. “I am sure that we will overtake China in the next 3 years, and we are aiming to double the current number because of the popularity of the country,” adds Gupta.

Graduating from a U.S. institution often opens doors to global career opportunities, which is a major incentive for Indian students. Moreover, students who graduate from a U.S. college can remain in the country on their student visa and work for one year on OPT (Optional Practical Training) or STEM OPT for two extra years "without having to worry about H-1B visas.” Indian students are finding all these opportunities attractive and heading towards U.S. universities.

2.4 Crisis of Affordable Housing

The affordable student housing crisis has been on the rise in the United States for several years now, and it has been a major problem for both students and universities. Between 2019 to 2023, the number of affordable homes available to low-income renters decreased by over 500,000, or 8%. This housing crisis has had a huge impact on university students, and it is a complex and multi-faceted crisis that has far-reaching implications. 

• The majority of 18% of undergraduate students in the United States live off-campus, depending on the local housing market, as per recent data. This trend is assumed to be relatively stable for many years. As college enrollment continues to outpace on-campus supply, students are facing an increasingly crowded and costly student housing market.
• One of the main causes of the student housing shortage is the widening affordability gap. As the demand for higher education continues to grow, universities are attracting to diverse student population, including low-income students. Unfortunately, the availability of affordable student housing has failed to keep up with this growing demand. As a result, the gap between the student’s ability to pay and the rising cost of affordable housing has become increasingly significant.
• The student housing crisis is closely intertwined with the larger housing crisis in the United States. As student housing rent increases throughout the country, students have fewer options, and they often have to choose between overpriced university housing or the difficult rental market.

3. Rents for Types of Student Accommodation in US

There are different types of student accommodation in the USA, ranging from luxurious private rooms and vibrant shared flats to stylish studios, chic apartments, and prestigious residences. Average student accommodation prices in the USA range from USD 620 to USD 2,000 per month. When it comes to finding student housing options in the US, there are several options to choose from to meet different needs and budgets.

3.1 Private Apartments

A single room in a shared house. Students in  the United States can expect to pay between $750 and $8,000 a month for a private room in a shared apartment,  depending on the location and amenities.

3.2 Shared Rooms

One or more students share a shared room in a home or apartment. The average monthly cost of a shared room in the United States for students can range from 750 USD to 6000 USD), depending on location and number of roommates.

3.3 Studio

A studio is a living space that includes a combined living area, bedroom, and kitchenette. The average monthly rent in the United States for a studio varies between 2,000 USD and 5,000 USD, depending on its location and size.

3.4 Entire Place

Renting an entire apartment or house for yourself can be quite expensive in the United States. On average, the monthly rent ranges from $1,000 to $3,000 or even higher, depending on factors such as location, size, and amenities.

3.5 On-Campus 

On-campus housing in the form of dormitory-style rooms. The average monthly rent for student hostels in the United States can vary greatly, ranging from $1,000 to $5,000, depending on the university and the type of room.

3.6 Homestay

Homestay involves living with a local host family, where students usually have a private room and share common areas. In the United States, the average monthly rent can vary between 900 USD and 5,000 USD, depending on the location and the services provided.

Urban cities in the United States are growing at a faster rate than the rest of the country due to population, economic growth, and cultural changes, making them ideal places for universities. Some of the US cities are home to top ranking universities. Let’s have a look at some of the top cities in the US and the type of accommodation they provide to international students along with their rent.

• New York

New York is a renowned city among international students, ranking 16th in the Best Student Cities index. It provides a great quality of life and ample opportunities for cultural experiences. Moreover, students can engage in a vibrant social life beyond the campus. Columbia University and New York University are among the top universities in the city. The average monthly cost of living in New York amounts to 1,350 USD.

• Boston

Boston is one of the most prestigious cities in the world. It hosts the best and brightest students from all over the world. A few of the most well-known universities in Boston are MIT and Harvard. The city is also known for its vibrant pubs, bars and love of sports. The average monthly housing cost in Boston is USD 850.

• San Francisco

San Francisco is located on the west coast of California, next to the Pacific Ocean. The city is well-known for its famous Golden Gate Bridge, making it an ideal location for international students studying abroad. The city is home to some of the best universities in the world, including Stanford University and the University of California, Berkeley.

• Los Angeles

Los Angeles, home to the world’s leading creative industries, is also a hub for higher education. It is ranked 31st among the top student cities in the United States. The world-renowned University of California is one of the leading universities in Los Angeles. It is also consistently ranked among the top 50 universities in the world. Los Angeles has an average monthly housing cost of USD 1,063.

4. Things to Consider Choosing Student Accommodation in US

Once you’ve decided on your dream university to study  in the United States, another important decision awaits: where to live. Finding student housing in a new city or even in a new country can be daunting. It’s important to find the right balance between the ideal location and the right price that suits your budget. Here are a few tips to help you in your perfect student house hunting.

• Choose student accommodation in US that fits your needs: shared dorms or private apartments, based on availability and your budget. Shared housing helps you build social connections, and you can rent with roommates or find an independent place.
• Consider your budget when choosing a price: you can save by living away from the city centre, or you can spend more for a private room with an ensuite. In the United States, sharing a room is common, which suits your budget and preferences.
• Think about your ideal experience: what do you want a fun and social place to live? Plan based on what you want to do outside of college. Check out the atmosphere and social scene on student forums.
• Explore and find the perfect location: choose between off-campus housing for exploration and on-campus housing for easy access to the college facilities. Use Google Maps to explore and find amenities, student hangouts and safety. Ask for college advice and check out transportation options.

When it comes to finding student accommodation in US, there are some challenges, too such as high costs, language barriers, and more. However, with the right planning, proper research, and support from university housing, international students are able to overcome these obstacles and find safe and comfortable accommodation that meets their requirements and budget. Ultimately, it all comes down to things to look for when choosing student housing. Moreover, when planning your move to US, it's always a good idea to have the ultimate guide to international student housing handy.

5. How to find Perfect Student Accommodation in US?

Student accommodation in USA is essential for a successful study abroad experience for international students. It affects the well-being, academic performance, and social life of students. Before you start looking for international student housing, you need to know your basic requirements, such as location, budget, length of stay, and amenities. There are many useful resources, such as University housing information, social media, student advisors and student accommodation booking platforms.
We, as an amber provide students with hassle hassle-free booking process. Amber stands out as a pivotal platform that greatly facilitates the challenging task of securing ideal student accommodation in US. With an emphasis on convenience, choice, and peace of mind, the platform has become a go-to resource for students embarking on their educational journeys. We offer a diverse range of student accommodations, including apartments, shared houses and PBSAs. Moreover, we emphasise the advantage of early booking, which makes your accommodation secure well in advance.

To sum up, we saw that the US has been a top choice for students based on research opportunities, career growth, and social and cultural engagement. The growing number of International students in United States led to the need for student accommodation.  The US student housing market offers a wide variety of student housing options, each designed to meet the unique needs and preferences of students. This demand for student housing drives the rise in rent.  In addition, with steady rental income and a high occupancy rate, the student accommodation industry has attracted substantial investment from institutional investors and property developers. We will deep drive into the investment opportunities in the US student housing market for investors in our next report.