Run Student Housing Properties? You Better Have Speedy Internet Access!

We rarely share press releases, but we felt you all would enjoy it:

HOUSTON, February 23, 2011 – J Turner Research, a leading market research firm exclusively serving the multifamily industry, today announces the findings of a student survey examining the importance technology and the impact these factors have on students’ rental housing decisions.  The findings reveal nearly two-thirds (64%) of students would consider relocating if Internet speeds in their current apartment didn’t meet expectations.  This data should put owners and operators on high notice; access to blazing fast Internet speeds is no longer an amenity, it is now a very high expectation among students.

The majority of the 10,000 student respondents said their apartment Internet connection was slower than their college or university (53%); however respondents said their satisfaction levels with Internet speeds in their apartment remain high with 43 percent of respondents ranking their satisfaction levels at a “7” or above, based on a scale from 0-10.  Those satisfaction levels become extremely important when you consider 56 percent of students claim they spend between 3-5 hours on the Internet every day, and another 16 percent spend between 5-6 hours online.

“This survey provided an outstanding opportunity to better understand the technology and bandwidth expectations among today’s students. It is the first indicator of the connectivity services the multifamily industry will need to deliver as these bandwidth hungry residents transition into the larger rental pool in the years ahead,” said Joseph Batdorf, president of J Turner Research.  “The fact students ranked cell phone reception and speed of Internet access as two of the top three amenities they seek in an apartment after a ‘large bedroom,’ underscores the importance this younger generation places on connectivity.” 

Wireless and the Prevalence of Bandwidth Multi-Tasking

The widespread use of wireless devices such as cell phones, iPads and laptops has driven the use of wireless Internet connections in apartment communities. According to respondents, 61 percent of students connect to the Internet wirelessly and the connection is accessed by multiple devices.  At any given moment, 16 percent of students claim to have three devices connected to the Internet and another quarter (25%) have three or more accessing their wireless connection.  What exactly are these bandwidth consumers using the connection for?

• 89% “do school work online”
• 87% are connected to access their social networking account
• 64% are “streaming music”
• 26% are gaming online
• 17% are using their connection for “peer to peer file sharing”
• 11%  stated they are doing all of the above

“Internet connectivity and bandwidth speeds are as important as location for students,” said Miles Orth, executive vice president and chief operating officer for Campus Apartments, one of the companies participating in the student housing survey.  “Low bandwidth equates to low occupancy in today’s student housing marketplace.”

Christine Richards, senior vice president for Education Realty Trust (EDR), another participating company, said “It’s imperative for communities to monitor students’ bandwidth usage and evaluate the existing Internet infrastructure to ensure you are delivering the connection speeds residents expect in their apartment, otherwise your occupancy and retention rates are going to suffer.”

Other Technology Survey Findings:

• 91% of students are more likely to rent in a community where access to the Internet is included in the rent
• Less than one quarter (22%) said they would be willing to pay an additional fee to increase bandwidth speeds in their unit
• 59% of students use a smart phone and ranked, on a scale of 0-10, 77% rated their satisfaction with their reception as a “7” or above indicating high satisfaction levels.