The depressed housing market continues to be a drag on the economy, but Durham is an exception. Being home to the largest university in the state has its perks, and that includes continued demand for new housing despite the recession and slow recovery. In the last four years, four major private residential student housing developments have been built, with the fifth and largest under construction right now. That development, The Cottages at Durham, will be completed this summer and house 616 students in 120 apartment complexes.
Even though it is still under construction, as of late January all but four rooms at The Cottages of Durham had been leased. Once built, it will generate a $900,000 tax bill for the town, making it Durham's largest taxpayer. Such developments are important for the town given that the largest landowner, the University of NH, is exempt from paying property taxes.
This is the best of all worlds, says Durham Town Administrator Todd Selig. It broadens the local tax base, has the potential to relieve the pressure of student housing on single family neighborhoods and they [private student housing developments] are well managed. That is key to preventing problems, having active on-site management. Selig says the $30- to $40-million project is the largest residential real estate project under construction in the Seacoast.
Another new development-Grange Hall Lofts-is renovating the historic GrangeHall in downtown Durham, which had fallen into disrepair, into commercial space and student housing. The project, being undertaken by developer Peter Murphy, has already rented its residential space, Selig says, which will house a total of 32 to 36 students.
The apartments in these new developments tend to be upscale. Units at The Cottages cost between $7,200 and $12,000 a year to rent ($600 to $1,000 a month for 12 months) plus heat and electricity. By comparison, on-campus student housing at the University of NH runs $4,674 to $8,000 annually, though UNH only has space for about 60 percent of its undergraduates. The furnished apartments at The Cottages include flat-screen TVs, free Wi-Fi and cable, laundry rooms and a common area for the entire development with sauna and hot tub. This is a trend nationwide of building student housing that is more upscale, says John Vawter, president of Cottage Builders Inc., the subsidiary of Capstone responsible for the construction.
Bryant Properties owns and manages apartment buildings and houses in Durham, including Bryant Park West, an eco-friendly complex with a green roof and energy-efficient appliances. There is often a six-month waitlist, with students signing up a year in advance. There, rents start at $500 a month.
Vawter says Cottage Builders is now looking into other NH communities for private student housing development. And his company is not alone. In Keene, Arcadia Hall, set to open this summer, is a 137-bed student housing development with rents ranging from $849 to $949 a month. John Chakalos, the developer of that project, is also considering another private housing development near Keene State.