Unit Mix Optimization Near Baylor: Studios vs. 1BR vs. 2BR—What Leases Up Fastest?

In the competitive multifamily housing market surrounding Baylor University, developers and investors face a critical question: what unit mix will lease up fastest? The right blend of studios, one-bedrooms, and two-bedrooms can make or break a project’s absorption rate, return on investment, and long-term stability. At Merck General Contracting, we’ve completed numerous multifamily projects throughout Waco and understand how local trends, demographics, and proximity to Baylor influence leasing velocity.

Demographics Drive Demand

The Baylor area attracts a unique mix of students, young professionals, and faculty. Each group values different features and price points. Students often prioritize affordability and shared living options, making two-bedroom units popular for roommate arrangements. Graduate students and young professionals lean toward one-bedroom or efficient studio layouts for privacy and convenience. Understanding these audience segments helps developers tailor layouts that fill quickly and reduce vacancy risk.

Studios: Fast Lease-Up, Smart Density

Studio apartments offer the highest density per square foot, allowing developers to maximize unit count within limited footprints. They appeal to solo tenants who value location and affordability over size. In Waco, studios near Baylor often lease quickly during peak semesters because of their lower price point and convenience. However, turnover can be higher as students graduate or relocate annually. From a development perspective, studios are also cost-effective to build due to smaller footprints, fewer materials, and reduced HVAC and plumbing runs. But they require strategic amenity placement—like shared study areas or rooftop lounges—to enhance livability and justify rental rates.

One-Bedrooms: The Leasing Sweet Spot

One-bedroom units tend to be the most balanced product type near Baylor. They attract both students seeking privacy and professionals who want low-maintenance living close to downtown or the university. One-bedrooms command higher rents per square foot than two-bedrooms and often lease faster in mixed-use or luxury settings. They also reduce wear-and-tear since most tenants occupy them individually. In new developments, one-bedrooms typically perform best in long-term occupancy and renewal rates. With efficient layouts, upgraded finishes, and smart amenities, they offer the most flexibility across tenant demographics.

Two-Bedrooms: Strong for Roommates and Families

Two-bedroom units perform exceptionally well near Baylor when marketed toward roommates or small families. They offer value for tenants splitting rent and utilities, and larger layouts appeal to graduate students, young couples, or faculty members. Although they may take slightly longer to lease initially, they often produce strong occupancy stability over time. Developers should consider incorporating dual primary suites or split-bedroom floor plans for roommate functionality—an approach that has proven highly effective in student-heavy areas of Waco.

The Importance of Amenities and Layout Efficiency

Unit mix alone doesn’t drive leasing velocity—amenities and design efficiency play major roles. Properties near Baylor that include modern finishes, smart appliances, dedicated study zones, and high-speed internet consistently outperform older stock. Community amenities such as fitness centers, coworking lounges, and rooftop spaces help smaller units feel larger and more livable. At Merck General Contracting, we focus on maximizing rentable square footage while maintaining tenant comfort. Optimizing plumbing stacks, mechanical chases, and shared walls ensures every square foot adds value.

Market Trends and Insights from Waco Developers

Current leasing data in Waco indicates strong absorption rates for one-bedroom and hybrid micro-unit designs—particularly those under 600 square feet. Two-bedrooms still lead in total volume for pre-leased student housing but are trending toward smaller footprints and higher finish levels. Studios are gaining ground as short-term or furnished units targeting visiting faculty, interns, or professionals on rotation. The takeaway: balanced developments that offer a mix of studios, one-bedrooms, and a limited number of two-bedrooms achieve the fastest overall lease-up and the best long-term ROI.

Build Smarter with Merck General Contracting

Choosing the right unit mix requires both data and experience. At Merck General Contracting, we collaborate with developers, architects, and property managers to design and build multifamily projects that align with Waco’s evolving rental landscape. Our deep local knowledge near Baylor University ensures your project meets demand, maximizes density, and leases up faster. Contact Merck General Contracting today to discuss your next multifamily project and discover how strategic design can enhance your lease-up success.