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Student Housing Crisis: New Report Reveals Declining Satisfaction and Growing Challenges

Istockphoto 1335298641 612x612A new report from StarRez reveals troubling trends in student housing that signal a fundamental shift in how higher education institutions must approach residential life. 

The company's second annual State of the Student Housing Industry Report, shows resident satisfaction rates have dropped nearly 7 percentage points from 2024, even as student expectations continue to evolve rapidly.

The comprehensive study, drawing from survey data of more than 400 institutions globally, paints a picture of an industry at a crossroads. While 73.3% of institutions still report high resident satisfaction, the decline represents a significant warning sign for campus housing leaders already struggling with staffing shortages and budget constraints.

Perhaps most concerning is the report's finding that one in three institutions still lack formal mechanisms for measuring resident satisfaction. This blind spot comes at a time when students are increasingly seeking living environments that support mental health, provide inclusion, and offer greater independence beyond basic convenience.

"The needs of residential communities are very dynamic," said Travis Knipe, CEO of StarRez. "Higher ed housing leaders who leverage this kind of high-quality information can drive strategies and adopt technology to help navigate change, build stronger relationships, and meet the needs of both students and staff."

The report reveals that staffing challenges have reached a critical juncture, with more than half of surveyed institutions operating with just 1 to 10 professional housing staff members, even as their responsibilities grow increasingly complex. This staffing crunch is directly correlated with staff satisfaction and retention rates, creating a cycle that threatens service quality.

In response, many institutions are turning to automation and technology solutions. Nearly 70% have automated reporting and analytics, while others are digitizing email communication, room assignments, billing, and front desk operations. The evolution extends to roommate matching, with over half of institutions now allowing first-year students to choose their own roommates and nearly 80% doing so for returning students.

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