Until recently, residence halls at most universities were a poor reflection of the high-class academics offered. A recent trend, however, suggests some schools are trying to provide equally impressive living spaces to match their top-notch education.

From California to Chicago, universities are spending hundreds of millions of dollars to renovate old dormitories or build new ones in order to appease student demands. Some schools revamp their residence halls not only to update their look but also to compete with other universities, said Sandy Baum, a professor of economics at Skidmore College in New York.

"What is clear is that this is an arms race," said Baum, who is also a senior policy analyst for The College Board. "Once schools have these" (state-of-the-art dorms), they are less likely to lose students.

However, "only a subset of the many varied institutions in the United States are engaged in this competition," Baum said. "At the same time that this is happening, stripped-down schools are succeeding by offering just basic coursework, particularly to older students."

There are still the younger students who "are asking for more" from universities, and who are currently getting more from institutions such as the Illinois Institute of Technology and Stanford University, Baum said.

IIT's newest student housing, State Street Village, is an example of the extravagance now available to college students. Designed by alumnus Helmut Jahn, the trio of five-story buildings features rooms with floor-to-ceiling windows, wireless Internet, stainless-steel furniture and Web-monitored laundry service. Landscaped courtyards, rooftop decks and lounges containing 50-inch plasma TV sets complete State Street Village, which cost $28 million to construct.

The impressive dorm, though, was not constructed merely to gain students, said IIT director of media relations Phil Rozen.

State Street Village is "state-of-the-art in order to meet student expectations," he said. "We have some of the brightest students in the world, (and) we needed to raise the bar on the student living situation."

"Increased demand for student housing" also spurred the construction of the residence hall, Rozen said. Despite the cost — over $6,000 a year to live in State Street Village — "the feedback we've gotten has been great. There has been significant student interest in the unique, cool, state-of-the-art living space," he said.

Stanford University in central California has spent $300 million over the last 10 years on renovating its dorms, but not for the sake of attracting or retaining students, said Rodger Whitney, the executive director of student housing.

The university's housing improvement program is an attempt to provide equal housing for undergraduate and graduate students, Whitney said. The program's goal is "to ensure that older residences are equipped with and offer the same living options, amenities and services that our newer, more recently built residences afford," such as contemporary furnishings, in-room wiring for computers and modernized facilities and programs.

Unlike IIT, where rooms in older dorms cost about $3,500 less than a State Street Village suite, Stanford maintains nearly equal rates for all its rooms, regardless of renovations or technological upgrades.

"Students have definitely been very happy with the improvements made to our housing stock to bring parity between our older and new housing facilities," Whitney said.