Greystar engaged The Scion Group LLC (“Scion”) to provide a Rental Housing Analysis for a proposed faculty-staff housing development for the University of California, Santa Barbara (“UCSB”). The purpose of the analysis was to work alongside UCSB and Greystar to determine market conditions, employees’ unit preference, demand for the number of units, renters’ rent tolerance, and favored amenities, features, and retail outlets.
Ocean Road is a planned community designed for UCSB faculty and staff, encompassing just over 16 acres of land owned by the University. The community will offer 360 rental apartments and 180 for-sale townhouses as part of a new neighborhood with retail shops, parks, and playgrounds. Ocean Road is located along the western edge of the UCSB campus within walking distance of campus amenities and the Pacific Coast. The community is to be built in two or more phases, with the first phase anticipated to open in 2023.
Scion analyzed the rental market in areas where UCSB faculty and staff reside by collecting data on unit types, current rents, lease terms, distance from campus, occupancy, and amenities. Scion also administered a survey to collect data on employees’ current housing situation, preferred unit configuration at estimated rents, preferred amenities and features, and other factors. The demand analysis used collected data, interest shown for specific unit types, and employee headcount by classification. To obtain a demand curve, Scion tested the units at five price points to understand what kinds of subsidies may be needed.
Scion’s analysis indicated that there is adequate demand to proceed with a project of 360 rental units for the Ocean Road development using a phased approach, especially if UCSB can offer financial assistance for a portion of the tenants. The potential demand determined by the market and demand analysis is further supported by the desirable location of the planned community on the UCSB campus. Additional rental housing is much needed in a community where the market has strong occupancy, the rents are high and suitable housing for faculty and staff is challenging to find. The Ocean Road community, with its proposed features and amenities, will be a welcomed addition to the choices faculty and staff have when determining where to live.