Real Estate Investment Opportunities

May 6, 2008

Investors who like to buy homes and multi-unit structures for rentals are finding that college towns are among the most potential markets. While most property values are declining, those in college towns are generally rising, and there is always an ample supply of renters (students and others) in these areas.

It’s more than just a large population of students that makes these areas appealing to investors. Retirees and professionals are increasingly selecting a college town for their residence due it its special lifestyle and availability of cultural activities. One study of these markets found that 17 of 25 college towns outperformed their respective states in terms of home price appreciation last year. In Palo Alto, California, home to Stanford University, median home prices increased 15 percent last year compared with the previous year, while overall real estate prices in California dropped by nine percent. In Austin, Texas, home of the University of Texas, prices increased by six percent, while values in the rest of the state remained flat.

Posted in Real Estate