Most Affordable Places to Invest in College Rentals

By E-Renter Tenant Screening
Posted on November 9, 2009 under Housing Trends | icon: commentBe the First to Comment

For Rent on Tenant Screening BlogColdwell Banker, the nationwide real estate firm, released a report on the most affordable college towns for investors. From Syracuse, NY, home of the University of Syracuse, to Athens, GA, where the UGA Bulldogs play, to the University of Notre Dame’s South Bend, IN, the comparison was limited to big football schools and homes of 2,200 square feet, four bedrooms, and two and a half baths. 120 markets were surveyed.

The results show that in 62% of the markets surveyed, real estate investors can pay less than $250,000 for homes of this size. Clearly, college towns offer great affordability for rental homes. Plus, the culture and ambiance of a college town makes these markets even more appealing to renters.

Some interesting facts that the study highlighted:
• The PAC-10 is the most expensive real estate conference, with an average of $747,180 for 4BR/2.5B/2200 SQ FT homes.

• Most affordable is the Mid America conference, where the average comparable home costs just $182,222.

• The ten most expensive college markets have average home prices ranging from $568,317 in Seattle, WA (University of Washington) to $1,489,726 in Palo Alto, CA (Stanford University).

• If those prices are too rich for your investing pocketbook, look to the middle portion of the US, where the ten least expensive college towns in this survey lie: Akron OH, Muncie, IN, Ann Arbor, MI, Ypsilanti, MI, Fort Worth, TX, Tulsa OK, Denton, TX, Houston, TX, Bloomington, IN, and Kent OH. Average prices for the four-bedroom comparison home in these markets are in the $122,000 — $166,000 range.

The president of Coldwell Banker called college markets a “best-kept secret” of the real estate industry. And, real estate pros have been investing in them for years. If you’re looking for your next investment opportunity, a rental home in a football-friendly college town just might be it!

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