Real estate investors are always seeking out new and lucrative ways to get the best return on their investments and one of the more popular trends for purchasing property can be found in and around college campuses across the United States. The reasons why are pretty easy to understand; college towns have a way of avoiding the typical housing market fluctuations that other parts of the country experience since there is always a need for affordable rentals in these locales. Many college towns are also fully populated year round as students, faculty, and administration staff choose to live in these towns despite class being out of session. They don't even have to be physically in a classroom setting either as many students elect to take online alternatives, such as WSU's emba online, which means they'll be spending more time at home pursuing their diploma.
Many of the college towns on our list are also major U.S. cities that are going to be attractive no matter what time of year it is and while campus life in and around these schools is among some of the most popular, these areas will provide real estate owners an abundance of revenue from possible renters who are looking for a place to live. This can also have a positive effect on resale values as many of these towns are desirable neighborhoods where most people are going to want to live.
With a constant potential renter pool, year round desirability, prices are likely to stay consistent in terms of rental and resale prices throughout the year, making real estate in college towns a smart choice for putting your money to work for you. When you're ready to dive into this segment of the market, here are five college towns you'll want to check out first based on studies conducted by the American Institute for Economic Research for 2015.
1. Chicago, IL
One of the most popular metropolitan cities in the Midwest is also home to two major schools, the University of Chicago and DePaul University (not to mention Northwestern just outside the city). The student concentration around these campuses is 74.2% and with an average rent of $979 for a two-bedroom the area is well-affordable for students and professionals alike.
2. Philadelphia, PA
Another major city that has two large schools University of Pennsylvania and Temple University, both of which count a combined student concentration of 76.5%. The average rental price of a two-bedroom unit will run you about $1,135 which is more than Chicago but far cheaper than Manhattan just a couple hours up I-95. The unemployment rate in Philly is 7.8%.
3. Los Angeles, CA
Southern California offers three big schools, UCLA, USC, and Loyola Marymount University. But it's not going to be too tough trying to sell anyone on living out by the ocean, and with a student concentration of around 88.7% near these campuses there's no shortage of potential renters available. The average rent for a two-bedroom is $1,390 a month so the location can command a solid price for your investment in a property near any of the three schools.
4. Baltimore, MD
This smaller city is home to Towson University and the prestigious Johns Hopkins University, one of the best medical schools in the United States. Student concentration is around 84.9% making it an ideal place to rent during the semester and with an average rent of $1,252 for a two-bedroom, you have nothing but upside in terms of bringing passive income.
5. Boston, MA
This New England town has four schools in the vicinity including Harvard, Boston College, Northeastern, and Boston University making it perhaps the most advantageous of the college towns to buy and rent property for a steady stream of revenue. Student concentration is up to 94.5% near these campuses and with an unemployment rate of 6.4% you can rent all year long in an area that is bustling and affordable too, with two-bedrooms commanding around $1,454 a month in rent.
Real estate investors are always seeking out new and lucrative ways to get the best return on their investments and one of the more popular trends for purchasing property can be found in and around college campuses across the United States. The reasons why are pretty easy to understand; college towns have a way of avoiding the typical housing market fluctuations that other parts of the country experience since there is always a need for affordable rentals in these locales. Many college towns are also fully populated year round as students, faculty, and administration staff choose to live in these towns despite class being out of session. They don't even have to be physically in a classroom setting either as many students elect to take online alternatives, such as WSU's emba online, which means they'll be spending more time at home pursuing their diploma.
Many of the college towns on our list are also major U.S. cities that are going to be attractive no matter what time of year it is and while campus life in and around these schools is among some of the most popular, these areas will provide real estate owners an abundance of revenue from possible renters who are looking for a place to live. This can also have a positive effect on resale values as many of these towns are desirable neighborhoods where most people are going to want to live.
With a constant potential renter pool, year round desirability, prices are likely to stay consistent in terms of rental and resale prices throughout the year, making real estate in college towns a smart choice for putting your money to work for you. When you're ready to dive into this segment of the market, here are five college towns you'll want to check out first based on studies conducted by the American Institute for Economic Research for 2015.
1. Chicago, IL
One of the most popular metropolitan cities in the Midwest is also home to two major schools, the University of Chicago and DePaul University (not to mention Northwestern just outside the city). The student concentration around these campuses is 74.2% and with an average rent of $979 for a two-bedroom the area is well-affordable for students and professionals alike.
2. Philadelphia, PA
Another major city that has two large schools University of Pennsylvania and Temple University, both of which count a combined student concentration of 76.5%. The average rental price of a two-bedroom unit will run you about $1,135 which is more than Chicago but far cheaper than Manhattan just a couple hours up I-95. The unemployment rate in Philly is 7.8%.
3. Los Angeles, CA
Southern California offers three big schools, UCLA, USC, and Loyola Marymount University. But it's not going to be too tough trying to sell anyone on living out by the ocean, and with a student concentration of around 88.7% near these campuses there's no shortage of potential renters available. The average rent for a two-bedroom is $1,390 a month so the location can command a solid price for your investment in a property near any of the three schools.
4. Baltimore, MD
This smaller city is home to Towson University and the prestigious Johns Hopkins University, one of the best medical schools in the United States. Student concentration is around 84.9% making it an ideal place to rent during the semester and with an average rent of $1,252 for a two-bedroom, you have nothing but upside in terms of bringing passive income.
5. Boston, MA
This New England town has four schools in the vicinity including Harvard, Boston College, Northeastern, and Boston University making it perhaps the most advantageous of the college towns to buy and rent property for a steady stream of revenue. Student concentration is up to 94.5% near these campuses and with an unemployment rate of 6.4% you can rent all year long in an area that is bustling and affordable too, with two-bedrooms commanding around $1,454 a month in rent.
