Beyond commercial real estate development: Student spending and economic recovery

Abstract

As consumer spending changes after a disaster, cities are often faced with ways in which to revitalise or renew certain nodes. This paper provides insights into how students can be leveraged to support economic recovery after a crisis. Apart from the skill benefits that arise from educating the students, they are also spenders of money and represent the ideal market that could fast track revitalisation of nodes. The spending made by students acts as a demand driver for activity in the retail, residential and quasi-commercial sectors, with increasing consumer activity and improvement of aesthetic appeal key contributors. In this research, activities that can benefit from student spending are derived from a student survey. The results reveal that students spend money on retail related goods that, rent higher density residential accommodation, and spend on entertainment and transport activities. Inner-city nodes, such as the Christchurch central business district, can benefit from a student or young-adult centric development plan where affordable, high-density housing is provided. This will have flow-on effects on other industries, as students spend within these nodes and at the same time, support recovery and renewal.