By Samantha Moll
Although rent remains high, students living off-campus can expect prices to be at least stable, instead of increasing sharply like they have in previous years, said Oscar Brookins, an associate professor of economics at Northeastern.
Despite the increased stability in prices off-campus, 6,130 upperclassmen applied for on-campus housing for the upcoming fall semester, a 6.5 percent increase from last fall, said Stephanie Cave, associate director of housing services.
Between fall 2006 and 2007, the price of on-campus housing increased about 17 percent, and this fall, rates went up five percent.
As room rates on campus increase, students can look forward to more opportunity for rent negotiation off campus.
Negotiated rent prices have fallen about 5 percent below asking rent prices since 2002, which means that in recent years, there has been more room for renters to strike a compromise with landlords, according to the most recent Greater Boston Housing Report Card (GBHRC), published in October 2007 by Northeastern’s Center for Urban and Regional Policy.
“The rental market is currently a buyer’s market, which means that the supply of rental properties in Boston is greater than the demand,” Brookins said.
The average rent for a two-bedroom apartment in Boston was about $1,600 per month, or about $800 per person per month, in the second quarter of 2007.
By contrast, the least expensive standard double bedroom on campus is $3,405 per person per semester, or about $850 per person per month.
For students who prefer not to share a bedroom, the least expensive standard single bedroom on campus for the upcoming school year is $4,035 per semester, or about $1,000 per month.
For some students, the convenience and benefits of living in residence halls outweigh the price.
“Benefits to students include being able to sign on for housing for a term, rather than signing a year-long lease. This gives students flexibility due to co-op,” said Cave, who said other features, like security and free cable, also make on-campus living attractive.
Brittany McFee, a middler finance major who lives in West Village B, said she decided to stay on-campus this year because looking for an apartment is time-consuming.
McFee said she disliked the idea of being tied to a year-long lease.
“I have been happy with on-campus housing so far, so don’t see why I would need to move off-campus,” McFee said.”
Despite the perks of staying in Northeastern residence halls, Phillip Kerr, a middler civil engineering major, moved off campus to Commonwealth Avenue this summer. He had previously lived in the 106-122 St. Stephen St. residence halls.
Kerr said the main reasons he moved off-campus were the poor quality of the less expensive residence halls and the high room rates.
“My current apartment is cheaper and nicer than my old on-campus apartment,” Kerr said. “I wish I was closer to campus, but it’s a trade-off between price and convenience.”
Some students said they move off campus to get more freedom.
Holly Peterson, a middler psychology major, is moving off campus, to Symphony Road in September. She said the costs of living on campus and the university’s sign-in policy contributed to her move.
“It just seems like if you’re going to pay that much for housing, you should be able to have as many people as you want in your room,” Peterson said.
Peterson said that while her apartment ended up costing more than she had planned, it is still cheaper than living on campus.
The prices of off-campus housing were lower in the second quarter of 2007 than they were in 2005, according to the GHBRC.
“Rental prices began decreasing slightly before the housing market started to decline but have been declining at a lower rate than housing prices,” Brookins said.
Standard ‘ Poor’s, an investment research company, collects housing market data to compile the S’P/Case-Shiller Home Price Indices, the leading measure of United States home prices. The most recent S’P/Case-Shiller Home Price Index for Boston shows a 6.2 percent decrease in home prices during the past year.
“Rental prices will continue to stabilize as housing prices decrease,” Brookins said.
Rental prices in Boston stabilized to correct the bubble in the rental market, Brookins said. Rental prices can stabilize either by decreasing, remaining the same or by increasing less than in previous years.
“There was some indication we needed a decline. There was a bubble in previous years, which implies that people were speculating,” Brookins said. “There has been lots of construction since the mid-90s when the city eliminated rent control. The population in Boston is declining. Landlords built their expectations too high.”
