Lunch Truck Survey Validates 66% Student Willingness to Pay for Premium Housing

[City, State] – An unconventional market research approach, spearheaded by real estate professional Bobby Fijan, successfully demonstrated significant demand for a high-amenity student housing project, convincing a skeptical equity partner to proceed with the deal. The innovative survey, conducted via lunch trucks, revealed that two-thirds of junior and senior university students were prepared to pay premium rents for upscale accommodations.

The project involved developing a second highly amenitized student housing building in a market where a similar, smaller complex had leased quickly despite rents approximately 50% higher than other local options. After an initial 60-day due diligence period, the equity partner expressed discomfort regarding potential demand saturation, fearing the total market might only support around 350 units. A commissioned study from global professional services firm Alvarez and Marsal proved inconclusive, primarily surveying only residents of the existing building, leaving the deal in jeopardy.

Alvarez and Marsal is known for its extensive real estate advisory services, including market analysis, feasibility studies, and specific expertise in student housing. Their professionals, such as Senior Director Jennifer Sembera, have a track record of performing demand studies for universities and developers. However, in this specific instance, the study's focus on existing residents did not fully address the broader market demand for a new, high-end development.

Undeterred by the traditional study's failure, Fijan, a real estate developer and founder of Form Analytics, took a novel approach. He personally invested $2,000 to fund a five-question survey, which he printed with a university logo. As Fijan recounted, he positioned himself near campus lunch trucks, wearing an alumni T-shirt, and offered "$5 for a 5 question survey!!" to students. This grassroots method yielded 200 responses within 20 minutes.

The survey questions were designed to gauge willingness to pay for specific amenities. Students were asked about their current living situation, willingness to pay $1000/month for a comparable building, and if private bathrooms, a roof deck, and a private gym would justify that price. The results were compelling: > "We crunched the numbers and it turned out that 2/3 of juniors and seniors were willing to pay that price for high-end product," Fijan stated.

This direct and targeted data provided the crucial evidence needed to reassure the equity partner, securing their continued involvement in the project. Fijan's method highlights the potential of creative market research to uncover specific demand segments that broader, traditional studies might miss, particularly in niche real estate sectors like student housing where understanding student preferences for amenities and price points is critical.