Kansas City Art Institute

Kansas City,

Student Housing Market And Financial Analysis

In 2015 the Kansas City Art Institute engaged B&D to complete a strategic student housing market and financial analysis for future on-campus housing. The assessment focused on understanding the opportunity for new and/or improved housing offerings in the context of the Institute’s strategic goals. At the time, 215 students lived on campus, but many believed Institute housing was below-average quality with tight living units and a lack of community and social spaces. Our work plan for this project included student focus group interviews, an analysis of competitive housing offerings, an Internet-based student survey, a parent survey, a demand analysis, and financial modeling. Based upon the project’s strategic objectives and the results of the market analysis, we recommended that the institute build a 300-bed apartment complex containing a mix of unit types to replace the existing Student Living Center and Chequers Apartments. Core objectives of future development and replacement included:

• Consolidating residential students closer to the campus core
• Reducing student safety concerns
• Improving campus community
• Improving project economics for the new facility

In our financial analysis, we found that basic cost allocations for the needed housing project’s parking suggested that a structure with 298 spaces would cost approximately $6 million and require a 20% increase in rental rates to support added capital costs. We advised that additional considerations―such as using the current Student Living Center lot or leasing space in the area―be explored to abate rental increases.