Navigating the Housing Crisis: Challenges for Students in Charlottesville

Affordable housing should always be guaranteed. Whether you are a new family, or college student, having access to affordable housing is essential for maintaining financial stability. Recently, in the housing market, the price of housing has skyrocketed, due to the lack of resources and growing demand.

According to JCHS at Harvard University, housing prices have risen to an “annual rate of 6.4 percent in February. With these gains, the US home price index is now a whopping 47 percent higher than since early 2020” [1]. The shortage of construction workers has become a large problem as well, as the construction industry has lost two million workers over the past several years. Specifically in Charlottesville, affordable housing for undergrads is continuing to dwindle, leaving many college students conflicted about where they should live in their upcoming years at the University. Although some government intervention has been enacted, it has not been enough to help aid the housing crisis which has impacted almost everyone in America from first time home buyers to college students.

The housing crisis ultimately began during the subprime mortgage crisis in between the years of 2007-2010. Subprime can be defined as an interest rate that is higher than a prime rate given to an individual with a low credit rating which can be risky. The subprime mortgage crisis stemmed from an earlier government regulation which allowed for borrowers with poor credit to obtain a loan. The housing market quickly boomed due to the multitude of homebuyers but fell short after borrowers fell behind on their loan payments. The subprime mortgage crisis eventually led to the Great Recession and still leaves lasting impacts on the housing market fifteen years later. 

For college students, this has become a very prevalent problem both for dorm and upperclassmen housing. As stated in USA Today’s article about rising housing costs, “the average cost of a dorm room at a four-year college rose by 37% in 10 years, from $5,433 in the 2012-13 academic year to $7,456 in 2022-23, federal data shows” [2]. This data shows a strong correlation between the rising price of houses and rising prices of dorm rooms. This exorbitant increase can lead to a financial burden for families who are also paying college tuition. The housing crisis affects not just home buyers, but renters throughout the United States. 

Specifically at the University of Virginia, finding affordable undergraduate housing is difficult as the price of rent and utilities continues every year. The University does offer limited On-Grounds housing at $990 a month, however, this is difficult to get due to the small number of available apartments. This leaves many students with Off-Grounds housing which ranges from $830 - $2,311 a month. This price for rent is something that most college students and families struggle to afford. This leads students to work part time jobs which takes away vital hours from their schoolwork.  

The government has tried to combat the many issues such as the rising demand, lack of resources and lack of workers by providing incentives for first home buyers. According to NBC News, “Vice President Kamala Harris has proposed offering $25,000 in down payment assistance to first-time homebuyers and incentives to homebuilders to construct more housing for first-time homebuyers” [3]. Although this plan is effective for first time home buyers, it does not assist those who are either renting like college students or are just trying to find affordable housing in general.

The housing crisis, stemming from the subprime mortgage crisis, still has lingering effects today. Not only does the rising cost of building and owning a home affect first-time house buyers but it affects people of all ages. College kids are especially getting hit hard, with the prices of apartments still on the rise, leaving students with immense financial burdens. In an effort to fight the increasing rise of rent, local governments can implement rent control laws which limit annual rent increases therefore protecting students from sudden rises in the price of housing. The University can also implement more On-Grounds housing for students at an affordable rate. Even though as individuals we are unable to do much to improve the rising price of housing, as a community we can be more informed and involved, actively fighting for affordable housing guaranteed to students. 

All content is the intellectual property of the Virginia Undergraduate Business Review.

REFERENCES

[1] Donahue, K. (2024, June 20). New report shows housing costs strain owners and renters alike; millions priced out of homeownership. Joint Center for Housing Studies of Harvard University. https://www.jchs.harvard.edu/press-releases/new-report-shows-housing-costs-strain-owners-and-renters-alike-millions-priced-out.

[2] De Visé, D. (2024, September 24). Two roommates. A communal bathroom. Why are college dorm costs so high? USA Today. Retrieved January 22, 2025, from https://www.usatoday.com/story/money/2024/09/24/college-housing-dorm-prices-rising/75288576007/.

[3] Pettypiece, S. (2024, September 22). Politicians are promising housing help. Homebuilders say the problems are many and the solutions scant. NBC News. Retrieved January 22, 2025, from https://www.nbcnews.com/politics/2024-election/politicians-are-promising-housing-help-homebuilders-say-problems-are-m-rcna171881.

[CHART] Sparber, S. (2023, December 16). Why houses are so expensive, explained in one chart. Axios. Retrieved January 22, 2025, from https://www.axios.com/2023/12/16/housing-market-why-homes-expensive-chart-inventory.

[IMAGE] Glaeser, E. L. (2023, Winter). Free to Build: How to solve America's housing crisis. City Journal. https://www.city-journal.org/article/free-to-build.