Iowa universities set steepest residence hall rate hikes in over a decade

IOWA CITY — The same day Iowa’s Board of Regents this month had its first consideration of across-the-board tuition increases for next fall, it also approved the public universities’ largest collective residence hall rate hikes in more than a decade — citing inflation, staffing struggles and years of meager rate bumps as the impetus.

“Resulting from inflationary pressures on utilities, wages and nondurable goods, the rate increase is necessary to maintain a quality level of service throughout Housing and Dining,” University of Northern Iowa officials wrote in their proposal, which received board approval May 10.

For the upcoming fall, rates for the most popular double room and meal plan will increase 6 percent at Iowa State University, 5 percent at the University of Iowa and 3.5 percent at UNI.

That 6 percent hike is the largest in 21 years for ISU — which in 2021, in the throes of the pandemic and in response to student feedback, became the first of Iowa’s public universities in recent history, if not ever, to impose a rate reduction for its standard room and meal plan.

“Rate increases in recent years (averaged 1.6 percent since FY 2021) have not kept pace with the inflation or provided sufficient funding for building improvement projects,” according to ISU’s residence system report and proposed increase. “Student leaders of the Residence Hall Association have expressed their support of the proposed rates.”

UI Housing and Dining, meanwhile, hasn’t raised its standard rate by more than 5 percent in 16 years, since 2008. And UNI, which held its rates flat in both 2020 and 2021, hasn’t implemented a rate increase above 3.5 percent since 2011.

“Cost increases are expected for personnel (including fringes), utilities, insurance and food,” according to ISU’s request, describing trouble finding workers and the need for more money to pay them. “Competition for high-quality, full-time and student employees continues to be challenging as there has been an exodus from service-related industries, inclusive of food service.”

All three campuses have employed retention and recruitment incentives to “attract new talent amid the staffing shortage.”

“ISU Dining continues to utilize temporary labor organizations to sustain operations and will continue to use them until sufficient staffing levels are attained,” its request stated.

Rates more than tuition

For a double room with air conditioning and a standard meal package, the UI increase brings its total room and board rate for the 2024-25 academic year to $12,318 — more than resident undergraduate base tuition, which is proposed to go up by 3 percent to $9,286 this next academic year.

For a double room with no air and a basic meal plan at ISU, the increase brings its total to $10,286 — also above the proposed resident undergraduate tuition rate of $9,252.

And a double room with a standard dining plan at UNI now will cost $9,986 — more than its proposed resident undergrad tuition rate of $8,564.

When adding together the proposed tuition, fee, room and board increases across the public campuses for next year — plus “other” anticipated academic expenses — the estimated cost for an in-state undergrad is $28,617 to attend the UI; $25,052 to attend ISU and $23,372 to attend UNI.

“Each residence system operates in a unique competitive environment with individual capital and operational needs and debt service requirements,” according to the Board of Regents, noting each of the resident hall systems are self-supporting — meaning they don’t receive state appropriations for operations or facility upgrades.

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Occupancy expected to swell

The three systems now house more than 19,500 students across 7.1 million square feet of facilities — up from 17,952 students and 6.4 million square feet in 2000.

Of the three, ISU has the largest on-campus housing capacity at 10,566 for this fall — nearly triple the 3,594 student capacity at UNI and 63 percent more than UI’s 6,465-student capacity.

In the academic year that just ended, the UI had the highest occupancy rate at 98 percent, topping ISU’s 96 percent and UNI’s 87 percent. That represented a marked improvement from UNI’s 81 percent occupancy in the 2023 academic year and 80 percent in 2021 — when the pandemic dampened interest in living on the campuses.

The UI, which saw its occupancy fall to 78 percent in 2021, expects occupancy to max out at 100 percent next year and in the years to follow — given enrollment projections, “primarily those of the incoming first-year class.”

“Based on current information, an entering class of 5,100 new first-time students from high school is planned for fall 2024, similar to the current year’s first year class,” according to the university’s 2024 residence system report. “The first-year class size is projected to remain relatively constant into the foreseeable future.”

At ISU — which historically has housed a higher percent of returning students in its halls than the UI — administrators expect occupancy to swell from 10,030 students in the year that just ended to 10,300, where it is expected to stabilize.

“Occupancy and financial forecasts are based primarily on projections of new direct from high school enrollment, transfer students, and recapture rates of returning students,” according to ISU’s report. “To help meet demand, additional capacity of 100 beds in University Village will be available beginning in FY 2025.”

UNI — reflective of year-after-year enrollment losses to 9,021 last fall from a peak of 14,070 in 2001 — in the year that just ended reported 87 percent occupancy, or 3,116 students in its 3,594 beds. In 2001, when its residence hall occupancy was 94 percent and its on-campus apartment occupancy was 98 percent, UNI reported 4,613 students in its residence halls and 355 of its apartment units occupied.

“Total occupancy in the traditional residence halls and the apartments is projected at 3,200 students next fall and is expected to remain stable over the next several years,” according to UNI’s residence hall report.

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Among UNI’s efforts to encourage more on-campus living — which research shows improves retention, ups GPA and increases overall student satisfaction — is a five-year-old “Live 2 Succeed” initiative aimed at getting returning students to stay in the halls.

All new UNI students who agree to live on campus for two years, instead of just one, receive a $1,000 scholarship their second year on campus through the program. To date, UNI has awarded $1.4 million in scholarships to 3,210 students through the program — which debuted with a $200 scholarship offer that increased in fall 2021 to $500 and then last fall to $1,000.

In the most recent spring semester, about half of all UNI residence hall students were in either their first or second year of the program. And where UNI historically had more first-year students in its halls, spokesman Pete Moris said, “We are anticipating a closer to 50/50 ratio of new and returning students for fall 2024.”

“We have seen an increase in the number of students returning to live on campus,” he said.

Millions more in revenue

Given occupancy expectations and rate hikes, all three campuses are projecting millions more in revenue next academic year — helpful in the face of ballooning expenses.

ISU, with its increase, has budgeted for $7.1 million more in gross revenue next year to offset an expected $3.6 million expense increase; the UI is anticipating revenue will swell by $4.6 million, more than doubling its $2.1 million expected expense increase; and UNI projects $1.8 million more income, offsetting an expenses bump of $835,459.

“The preliminary budget also reflects the inflationary impact to operating expenses including food, utilities, and personnel costs,” according to UI Housing and Dining, which in February reported being at 85 to 90 percent of normal staffing levels. “In recent years, (Housing and Dining) has increased wages and retention bonuses for custodians and kitchen staff, which positively impacted staffing levels.”

ISU plans to use some of its additional $7 million on facility upgrades — including air-condition additions, restroom and courtyard improvements and dining center renovations.

Across the UI residence system, more than $50 million in capital improvements are planned over the next five years — including renovating the 85-year-old Hillcrest Residence Hall and converting “all remaining community restrooms (in three residence halls) to single-user restrooms over a period of several years.”

“We are beginning phase one of a four-summer restroom renovation project in Currier Hall, converting community restrooms to single-user facilities,” UI Assistant Vice President for Student Life and Senior Director of University Housing and Dining Von Stange said.

Summer living, renovating

Although upgrades and general maintenance is underway across the systems this summer, all three campuses will continue to host some students in a handful of halls.

“For summer school, we normally house around 100 students over the different sessions,” the UI’s Stange said. “In addition, we house affiliated individuals from university-sponsored camps and conferences during late May, June and July.”

ISU also reported fluctuating occupancy rates over the summer but said, on average, 10 percent of students who live on campus during the academic year also sign summer contracts.

“In addition to providing student housing, the Department of Residence provides conference space and housing during the summer months,” ISU spokeswoman Angie Hunt said. “This year, the department will host Odyssey of the Mind World Finals, Special Olympics, a variety of athletic and cheer camps, among others.”

Among its summer construction is general upkeep — a process that begins immediately after students vacate after the academic year.

“General wear-and-tear repairs are documented during move-out and addressed by maintenance crews during the summer months,” Hunt said. “Other building projects range from replacing carpet and new paint to improvements for student living and gathering spaces.”

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com