Best Back to School Real Estate Investment Cities (DATA)

Published By : Scott Garner on Wednesday, Aug 10th, 2011, 5:50 am

490489-1The back to school season is often characterized by parents and students making last-minute mad dashes to purchase school supplies, uniforms, bus passes or books. This year, parents with college-bound students or investors interested in college towns may be considering an unusual back to school purchase – a rental property.

“I had a client who was an alumnus of the University of Maryland and he was interested in purchasing his first property. He was insistent on finding a home within 10 to 15 miles of campus so that he could rent the basement out to college students. We closed on the property, and literally within five days he had a renter for his basement,” said Bowie, Maryland real estate consultant, Natalie Dean.

In the next two years, real estate investors are expected to outnumber traditional homebuyers in their local markets by three to one, and 56.5 percent plan to put their investments to work as rental properties, according to a national survey we recently conducted.

“Local markets with universities or colleges can be an attractive option for many local real estate investors,” said Move, Inc., Chief Executive Officer, Steve Berkowitz. “Housing demand in college towns is generally high and vacancy rates are usually low. Combine the supply and demand ratio with rising admissions and the five percent rise in rental rates expected by the end of the year, and rental property in college towns can be a smart option for the right investor.”

City

Median List Price

Y/Y % Change

Average 2 bedroom rent

Average 3+ bedroom rent

Average mortgage

Boston, MA

$335,000

-2.62%

$3,122

$3,913

$1,370

Nashville, TN

$189,900

-0.05%

$949

$1,020

$770

Chicago, IL

$199,900

-16.36%

$1,780

$2,074

$820

Washington

$375,000

5.63%

$3,086

$3,214

$1,530

Houston, TX

$174,900

-0.06%

$1,218

$1,478

$710

South Bend,IN

$112,900

7.53%

$790

$880

$460

Atlanta, GA

$159,600

-13.68%

$1,236

$1,485

$650

Baltimore, MD

$242,700

-7.72%

$1,443

$1,663

$990

St. Louis, MO

$163,945

-3.51%

$1,016

$1,283

$670

Syracuse, NY

$154,900

-3.13%

$838

$970

$630

Find out more top college-town real estate markets at Move.com

While Asheville didn’t make move.com’s top ten Back to School Real Estate Investment Cities, there is no question that the Asheville area with six college’s and universities in the area is fertile ground for investors.

A Beverly-Hanks agent in cooperation with a Beverly-Hanks Mortgage Loan Officer (NMLS #42020) can certainly help you evaluate your real estate investment options in the Western North Carolina Region.