But the University of Texas at Austin is paying more than that for a single college dormitory. Because college housing isn't so simple anymore, and Austin is no longer just a university town. College students throughout the country have come to expect dorms with private bathrooms, cable TV and the other amenities they have at home, so universities are increasingly willing to pour into student housing the kind of money private developers spend on high-rent properties. The new UT Austin dorm is far more expensive than others in Texas, partly because of the city's high construction costs.
Surveys show students are generally willing to pay for high-quality housing.
The bonds will be repaid through student rents and other income from the dorm. Students and administrators alike agree on the need for more on-campus housing. Approximately 12,000 students applied for about 5,300 dorm spaces for the coming fall semester. The university last built a dorm in 1969, when it opened the Beauford H. Jester Center. Much has changed since then, and most of the changes have helped drive up the cost of new dorm construction.