I know that you mentioned that they are encouraging first year students to live on campus, but part of college life is starting life on his own. He sounds like a good kid and could handle living in any apartment with friends or others, without the insane restrictions that campus housing can have. Admittedly, I chose to go to a different university due to helping my retired(now deceased parents out) as they traveled and I had their home to myself 90% of the year, but also because I could live a temple recommend worthy life at BYU or any university. Of those that I served my mission with that had lived in BYU housing, they all advised me that if I chose to go to BYU, to get an apartment off campus.
For some, it may be their thing to have strict rules concerning curfew, girls, and other issues. I wanted to serve an honorable mission but leave the mission rules in the Philippines. It really depends on what reasons he is wanting to live there. From everything I see when I travel to each home game, there are plenty of nice apartments that are near campus in Provo or Orem. If he has friends that he is going to BYU with, have them get together and get a place. If you have multiple kids and you are paying, consider looking for a townhome or small home for them to share.(something multiple elders I served with from Hawaii and other far away states did) Their parents rented out the extra rooms to help with the mortgage, were able to write it off on their taxes, and had a place to stay when they visited Utah.