More Parents Buy Homes in College Towns – Survey
A poll of property agents has found that many parents are considering investing in buying properties near or around universities. The college property market remains strong despite negative market forces.
College town property market is becoming more popular. A poll conducted and released by Real Estate franchise Coldwell Banker indicated that a rising number of parents now prefer to invest in homes where their children could live in while attending university. According to the survey,
64% of respondents (Real Estate agents) have customers that are comprised of such parents.
According to analysts, Real Estate interest in areas near or around colleges and universities is expected to rise further, because parents want to provide comfortable and better homes for their children. Some intend to be landlords by renting out their units to students. This way, they could somehow cover their investments. Not surprisingly, demand for such home rentals around universities remains high.
It is also noted that the appeal of properties around universities is not in any way affected by the recession. About 73% of the poll’s respondents expect more investors to buy homes near or around campuses to rent them out to students who need good shelter while attending college. This is despite the economic downturn, which is affecting many other segments of the overall housing market.
Costs are also cited as a significant factor. Board and room fees for 2010 to 2011 have risen by 4.6% typically around public or state universities. Such fees have increased by 4% in areas near or around private or non-profit universities. This is according to the College Board’s latest figures.
Analysts said this type of Real Estate investment could be further appealing. This is because not all college Real Estate centers are as expensive as Seattle. According to the same survey conducted by Coldwell, about two-thirds of college town property markets have average home listing price of $250,000 or even less.
Among the most affordable homes are found in Muncie in Indiana, which is near Ball State University. Average home listing price in the area is at $105,115. Comparatively, the most expensive property market for college homes is Palo Alto in California where Stanford University is located. Average home listing price in the area is at a whopping $1,385,652.
More interestingly, buying properties at college towns is not just for parents. The survey found that up to 51% of Real Estate agents sell homes to alumni homebuyers, or those who have attended college in the university near the property market. About 49% of the agents said they have also sold college town homes to retirees.
