MIT Facing Housing Cost As Real Estate Market Changes

With the Massachusetts Institute of Technology occupying prime real estate on the Charles River you would think that the housing department would have an easy time with on campus housing, but this article from The Tech shows that housing concerns plague all of us.

The increased utility and maintenance expenses are putting pressure on the housing costs for students at MIT. And one of the big concerns for the housing department is that students will live off campus and refuse to pay the housing fees for the university leaving on campus housing empty.

The problem is that all of the on campus housing I have seen tends to be so institutional and restrictive that when costs are out of line with the local market and students are allowed to make their own housing choices, the school’s housing is the least favorite alternative.

So Boston, which has a housing slowdown, now is putting pressure on housing inventory for the students. The nice thing is that competition will pressure the university to keep housing costs reasonable and force them to make the improvements needed to keep the students renting from them. And in this scenario students end up being the winners.

Deciding housing rates for graduate students is a bit more complicated. Cummings said that the graduate students’ stipends need to cover the rent increases. If the rent is increased, stipends must also increase. Housing also faces the external pressure of off-campus rates. If off-campus housing is cheaper than MIT housing, graduate students move off-campus, Housing receives less revenue, and the vacant rooms become rather costly. According to Cummings, Housing has initiated policies that make it easier for graduate students to live here and to choose their rooms. Cummings said, “Keeping rooms occupied is not a simple task.” via The Tech

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