When Heidi Veideman started her journey at the University of California, Davis, in autumn 2022, she was prepared with a range of need-based grants that successfully paid for her tuition.

However, those grants did not extend to her housing costs, which amounted to over $10,000 for the year for a “triple,” a room shared with two other people. This breaks down to roughly $1,250 a month just for one-third of the space.

“The setup included one single bed on one side and a bunk bed on the other. The space was quite cramped, and we had to share a bathroom,” Veideman reminisced. “I really felt it was overpriced.”

At 20, Veideman had to take out loans to cover the full expenses of her room and board. Concerned about accumulating debt, she decided to leave Davis after just one quarter. Now, two years later, she finds herself 400 miles away at UC Irvine, living with her fiancé’s family.

“People often discuss tuition,” she mentioned. “But dorm fees are a whole different challenge.”

College tuition is rising, yet housing costs are escalating even faster.

While students and their families worry about increasing college tuition, housing costs are on a sharper rise.

According to federal data, the average expense for a dorm room at a four-year college surged by 37% over ten years, escalating from $5,433 during the 2012-13 academic year to $7,456 in 2022-23. In contrast, tuition and fees only climbed 26%, from $14,099 to $17,709.

Moreover, when adjusted for inflation, tuition and fees appear to have decreased over the last decade, while housing prices have risen significantly.

“The focus is heavily on ‘What is the tuition amount?’” explained Robert Kelchen, an education professor at the University of Tennessee, Knoxville. “However, especially at public universities, the cost for room and board often surpasses that of tuition.”

Some elite colleges charge upwards of $10,000 annually for student accommodations. For two students sharing a dorm room throughout an eight-month academic year, this averages out to more than $2,500 monthly for a single room. (The estimate is based on students residing on campus for two semesters, each lasting approximately four months.)

High-end student housing can exceed $2,000 per month

At UC Berkeley, a flagship of the California public university system, the cost for students has reached at least $12,675 annually for a triple accommodation, equating to about $4,750 monthly when shared among three tenants.

Meanwhile, Georgetown University, a private institution in Washington, D.C., presents housing costs that range from $11,616 to $22,916 per year.

At Arizona State University, another public university, annual housing expenses start near $5,000 and can reach as high as $21,492.

Private New York University has housing rates varying from $10,240 to $26,720 annually, with the highest fees surpassing $3,000 monthly.

College housing costs encompass more than just rent

While many housing prices seem exorbitant, financial experts in education assert that colleges are not profiting off the rents they collect; instead, they are covering essential expenses.

“The rates for on-campus housing involve more than just rent,” stated Olan Bryant Garrett, associate vice president of student affairs at Temple University in Philadelphia. “Typically, utilities and maintenance costs are included in these fees.”

It is also important to note that most dorms are occupied for only eight months out of the year. Consequently, universities must recoup a year’s worth of rent within that time frame.

The fees for dorm facilities cover not only utilities and maintenance, but also various labor expenses that far exceed the staffing in a standard apartment complex.

“This includes resident assistants and a considerable amount of additional personnel dedicated to student needs,”

“You have more support and assistance there,” Kelchen explained.

Concerns About Housing Inequality on Campus

However, some experts express concern that varied college housing costs may reinforce a divide between wealthier and poorer students.

For example, at Temple University, which is a public institution, housing prices vary significantly from $9,576 to $16,360 a year. The higher end of that range is approaching the tuition for residents, which starts at $18,864.

As Kelchen noted, “Colleges across the country offer a variety of housing options, from older cinderblock buildings to more luxurious setups, resulting in wealthier families opting for the more upscale accommodations.”

According to the College Board, the combined cost of housing and food for four-year public colleges averaged $12,770 for the 2023-24 academic year. This amount now exceeds the average tuition and fees, which were $11,260 for in-state students during the same year.

In contrast, private nonprofit colleges like Georgetown and NYU averaged $14,650 for room and board in 2023-24, while tuition and fees averaged $41,540.

“Housing costs constitute a significant portion of college expenses today,” stated Jason Cohn, a research associate at the Urban Institute’s Center on Education Data and Policy. “If we aim to make college more affordable, it’s crucial to address living expenses in the discussion.”

While state legislatures and college boards closely monitor yearly tuition hikes, “campus housing often doesn’t feature prominently in these discussions,” added Justin Ortagus, an associate professor of higher education at the University of Florida.

The Off-Campus Rental Market: A Tough Landscape

The college housing situation somewhat mirrors the tough realities of the broader rental market outside campus.

According to Zillow, rental prices have risen by a third since the pandemic. In premium locations like New York City, Boston, and much of California, rents for off-campus living can make on-campus rates appear comparatively reasonable.

At UC Davis, housing prices are “about 25% lower than the average market rates in Davis,” factoring in additional utility and Wi-Fi expenses, according to university spokesperson Julia Ann Easley.

Some universities located in areas with high rental rates, such as Berkeley and UC Santa Cruz, are working to build new dormitories to increase available on-campus housing, as highlighted by a report from the education journalism nonprofit Hechinger. Additionally, the University of Texas at Austin provides housing scholarships.

Colleges could alleviate students’ housing burdens by offering more grants based on financial need rather than loans, as suggested by Cohn.

Furthermore, the federal government could assist by raising the Pell Grant amount available to students with significant financial needs. Currently, the maximum annual Pell Grant stands at $7,395.

“There’s been a lot of discussion about potentially doubling the Pell Grant,” Cohn mentioned. Alternatively, the government could establish “a distinct grant program specifically for living expenses.”

Earlier this year, Democratic lawmakers proposed a bill that aims to nearly double the maximum Pell Grant within five years. However, this proposal has yet to be brought before the full House or Senate for a vote.

Advice from Experts: Understand the Total Cost of College

Meanwhile, experts advise that students and their families be mindful of the total costs associated with attending college. It’s essential to remember that selecting the wrong housing option can lead to extra expenses amounting to thousands of dollars.

According to Garrett at Temple, who is also the vice president of the Association of College and University Housing Officers-International, “The newer the residence hall and the more independent living it offers, the higher the price likely will be.”

“Most people desire the most luxurious option,” Garrett stated. “It’s crucial to determine whether you can afford such luxuries.”