Both of my kids lived off-campus for their junior and senior years (at different universities).
I’m glad they weren’t pressured to move off campus as sophomores (both universities guaranteed housing for at least two years) because that would have meant having to deal with the complexities of making off-campus housing arrangements while they were still freshmen.
But I think that both the dorm living experience and the off-campus living experience were good for them.
Dorms and their associated dining halls are great places to meet people, make friends, and get used to college life. But you live in a very crowded space, especially if you’re in a double, and the meal plan is often an awkward fit with students’ schedules (so much so that my daughter, who was at a college where students living on-campus were not required to have a meal plan, didn’t sign up for one in her second year and paid cash to eat in various places on- and off-campus instead).
Living in an apartment with apartment-mates you chose, a real kitchen, and some living space other than bedrooms, is considerably more civilized than dorm life. And if you’re an upperclassman who already has friends, the fact that you don’t meet new people in the place where you live is not much of an issue. You also learn more responsibility in this setting – for housework, paying the rent and other bills, making arrangements with the landlord for repairs and other issues, arranging for utilities and TV/Internet, sharing chores with your roommates, dealing with the issues that arise if someone wants to move out of the apartment, and cleaning the living daylights out of the apartment before you move out so that you will get your deposit back. It’s good preparation for the (often shared) apartment living that’s typically comes after graduation.
And the process of choosing an apartment can be educational, too, in some cases. It wasn’t for my son, who was simply asked by a friend to fill an empty space in an apartment, but it was for my daughter, who researched buildings and landlords; visited several apartments with her prospective roommates; learned, along with her friends, that the rather large group of people who wanted to live together would have to split into two smaller groups; and then participated in another joint decision about the actual choice of an apartment for herself and her two roommates.
Depending on the college and the community, living off-campus does not necessarily mean being isolated from college life. Both of my kids lived in apartments that were as close to the center of campus as many dorms, and both continued to be very involved socially with their college classmates.
One problem that I would not have anticipated, but that turned out to be an issue for both of them, was food. Neither had a car, and neither of the off-campus apartments was within walking distance of a supermarket. Therefore, they ended up eating on-campus or eating food from takeout places or convenience stores. They didn’t cook much because it was too difficult to obtain anything to cook. And they did not save money on food by living off-campus. But this was a small negative that didn’t cancel out the many positives.