It is well known that prices have been increasing over the past several months. Loosening of two-year COVID-19 restrictions, the ongoing war in Ukraine, the resulting economic sanctions and supply shortages have all culminated in a period of national inflation.
This has become particularly apparent in the housing market over the past several months. In Madison, rent prices have increased by over 8.3% since last year, and this trend is only expected to continue as the nation struggles to contain the effects of inflation.
It is no secret that the nation’s economy is struggling with this troubling inflation. With prices rising faster than wages, the cost of living is rapidly becoming unaffordable for many individuals. This is especially true in regards to housing, and these costs are hitting college students with extreme ferocity. Students have reached a point where they are forced to take out loans to afford the cost of rent alone.
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The demand for apartments and housing options on or around campus has risen sharply over the past year in response to loosening COVID-19 restrictions that have students hoping for the traditional college experience many missed over the past two years. Not only this, but issues originating from the housing bubble collapse in 2008 have led to home and apartment construction across the nation being below average for over a decade.
Madison has felt this strain on its housing market just as deeply. Dane County is expected to see an additional 7,000 people per year looking for living accommodations. But according to agency director for the Capital Area Regional Planning Commission Steve Steinhoff, supply cannot meet this demand just yet.
“It takes a lot of time, as you can see, to build new housing units,” Steinhoff said. “As I said, if we need 3,000 housing units or so every year, that’s just a lot to add in order to keep up. If you don’t keep up, that means more and more people are competing for fewer and fewer units and that drives the price of rent up too.”
With demand now vastly exceeding supply, the sharp increase in prices seems to have been inevitable.
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College students are feeling these costs the most. Tuition rates have been on the rise in the U.S. for decades. According to data collected by the U.S. News and World Report, out-of-state tuition and fees at public national universities like the University of Wisconsin have increased by 171% over the past two decades. In-state tuition levels have jumped even higher — over 211% across the same period.
Students attending universities in large cities face the additional burden of finding housing with increased competition. Many are now deciding whether it is financially feasible to continue attending college because the potential of becoming housing insecure is too great.
Working through school to cover these costs is unlikely to satisfy these students’ bills. Most undergraduates take jobs with an hourly salary, often at state or federal minimum wage.
When adjusting for inflation, the cost of attending college has continued to rise while real wages — meaning the actual purchasing power of one’s earnings in the current economy — have declined. This means that the same amount of work that would have covered tuition and fees in the 1970s can only cover 57% of the average four-year tuition bill today. This is not even taking housing costs into account.
These factors have forced many students to sacrifice study time and extracurricular activities in order to work longer shifts. Research shows that working over 20 hours a week while enrolled in a full-time curriculum is correlated with lower grades and retention rates.
Thus, students face the paradox of needing to work to afford an education but risking a lower GPA and academic status by working full time. The spike in rent prices over the past year has only exacerbated this impossible situation.
It is abundantly clear that rent is becoming too heavy a burden for college students. But this begs the question — how do we solve this problem?
Attending university has to be possible for students. Reducing the cost of tuition is a start, but the cost of housing cannot be a forgotten expense. With rapidly rising housing costs and an extreme supply shortage that is being especially felt in college towns, universities need to increase support for their students.
On-campus housing should be guaranteed for every admitted student throughout their entire enrollment. Not only this, but these costs should come at a significantly reduced cost or be entirely included in tuition.
There must also be federal action taken to make this happen in addition to individual institution changes. More funding should be specifically devoted to covering the cost of housing. These funds must take inflation and current economic factors into account, as well as the housing market of individual students’ colleges and college towns. Too often, grants and scholarships available to students are overgeneralized and insufficient.
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While increasing the affordability and accessibility of dorm living is crucial, this is not where the majority of students reside during their education. Many upperclassmen find themselves looking for houses or apartments as their needs grow beyond what a dorm can offer. It is simply unreasonable to expect individuals to live in a dorm room throughout their entire higher education.
It is similarly unreasonable to expect universities to be able to house this many students at one time. This housing supply shortage is not only being felt in apartment complexes and family-style homes but in college residence halls as well. Thus, government grants and funding for student housing must include these options as well.
Students should not have to sacrifice their academic standing in order to afford housing. During a time of scarcity and uncertainty, the communities that need financial housing assistance the most, including those attending UW and other colleges across the country, must be supported.
Fiona Hatch is an undergraduate studying political science and international studies.
