Assessing the impact of higher education institutes on rental housing : a case of Nagpur

Abstract

Education plays a transformative role in the lives of people in terms of their skills, autonomy, freedom, and confidence, with a resultant positive impact on the overall development of a country. On the other hand, it can help one to access education, and it leads to social and economic mobility among individuals. India’s shift towards a knowledge-based economy, coupled with policies aimed at fiscal prudence and public sector restructuring, has resulted in a significant expansion of Higher education Institutions. Higher education institutions are increasingly recognized as an anchor institution that plays a significant role in shaping the urban fabric. Their presence contributes to economic vitality and urban development but also triggers significant changes on local levels. At the same time, educational migrants have increased to a place that will offer multiple benefits from a career perspective. This study argued that HEIs contribute to increased rental demand in the surrounding neighborhood, leading to higher rent levels decreased affordability for students. This study explored the available housing options (on-campus as well as off-campus accommodation) for migrant students and their rent, and explored the related challenges faced by students based on a field survey. Nagpur was selected as a case study to analyze the impact, where two HEI clusters, having 8 Higher education institutions, were selected for the study. The study utilized primary survey data and secondary sources to build a comprehensive dataset. The primary survey was undertaken from 3rd February 2025 to 16th February 2025. The different target groups of the survey were migrant students at Higher Education Institutes, HEI administration, Landlords, and real estate agents. The relevant information was collected using semi-structured interviews, key informant interviews. The study has also used focused group discussion (FGD) among landlords and students (6-8 participants) as a part of exploring tenant-landlord relations and understanding the varied nature of student accommodation. The rent-related data were collected from different real estate websites. The first part of the study examined the current housing situation for students of higher education institutes and their preferences in the rental housing. The second part of the study examined the impact of higher education institutions on rent, where the relationship between the higher education institutions and rental prices was studied using spatial as well as quantitative methods of analysis. The Hedonic Pricing Model (HPM) was used to evaluate the relationship between higher education institutions (HEIs) and rental prices. The third part of the study discussed the pressing challenges that emerge in the life cycle of students during their stay in the destination. In conclusion, the analysis revealed that higher education institutes often have limited accommodation capacity, and their hostel fees are higher than private rentals, leading students to prefer off-campus rental housing. However, off-campus living presents challenges, as the distance range preferred by students for its balance of moderate rent, including travel costs and time, offers limited rental options. Additionally, rental trends over the past five years show that areas with high student demand experience greater yearly rent increments as compared to less demanded areas, creating affordability issues for students. As a result, students end up spending more on accommodation than on college fees, exacerbating their financial burden. The findings of the study suggest that there is a need for equitable housing strategies around Higher education institutions, including inclusionary zoning , and recommendations for policy improvements. Keywords: Higher Education Institutes, Student migration, student accommodation, Rent, Hedonic Pricing Model, Affordability