 As campus residences accommodate just 6,400 students in all, the university guarantees housing only for undergraduates in their first year of study, while most upper-year and graduate students reside off-campus.Traditionally, the adjacent neighbourhoods of The Annex and Harbord Village are popular settling grounds for University of Toronto students, forming a distinct student quarter enclave.In 2004, the university purchased and converted a nearby hotel in the district that would later become Little Japan to the south into the Chestnut Residence, which houses students from all colleges and faculties.