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ASK THE EXPERT

Universities looking to P3s to modernize their housing programs

More students are moving away from traditional dorms and looking for housing that builds community and connection. Schools that are leaning into this shift aren’t just rethinking their housing programs; they’re also getting creative with financing to make projects happen. In this Ask the Expert, Caroline Johnson, senior associate in B&D’s DC office, shares what “next-generation” housing really means and how schools are making it work financially. 

B&D: Tell us about yourself.
Caroline Johnson: I studied civil and architectural engineering at Drexel. This is my 10th year at B&D and I work with higher ed clients on planning and early-stage projects, including master planning, financial modeling, procurement, and advising across housing, dining, mixed-use, and campus edge developments. 

B&D: We hear a lot about “next-generation” student housing. What does that mean?
CJ: It’s really about moving beyond traditional dorms toward a more integrated residential experience. That means more focus on community, flexibility, and technology. We’re seeing more apartment-style layouts, private bedrooms, stronger sustainability features, and smarter building systems. 

B&D: With construction costs and interest rates still high, how are universities approaching financing?
CJ: The biggest shift is toward public-private partnerships, or P3s. Typically, the university contributes land and helps guarantee demand, while a private partner handles design, construction, and often financing and operations. This lets schools build housing they might not otherwise afford due to limited debt capacity. 

Even with more traditional delivery models, schools are getting creative. That includes modular construction, loosening certain design standards, using alternative materials, and tapping into state and federal funding programs. In many cases, renovating existing housing is more cost effective than building new, so we’re seeing more reinvestment in current inventory. 

B&D: Looking ahead, how important is student housing to enrollment and financial health?
CJ: It’s critical. For many students, especially first-year and international students, housing can directly influence where they enroll. That’s only going to matter more as schools face the enrollment cliff, which is the expected drop in college-age students over the next several years due to declining birth rates. With fewer students to compete for, having strong, appealing housing can really set a school apart. 

Thanks again to Caroline for joining us. Have a topic you’d like covered in a future column? Submit it here.