When it comes to buying a home that will be a good investment in the long-term, you can’t go wrong with college towns. Why choose a college town? There are a number of perks like a constant influx of new residents and stable rent prices that makes college towns the ideal spot for investment properties.
With new students always moving to the area, you’ll never have to search long and hard for new tenants. Also, most students are either working or have parental support to help them fund their college housing, making it a more secure pool of applicants. Even if the homeowner chooses to live in their own investment home, they’ll have a great property close to the best things in town, like local campus entertainment, restaurants, and activities.
Are you considering purchasing a property in a college town? If so, now’s the best time to buy. Just be careful when choosing your college town to ensure you’re maximizing your home’s value. Here are the cheapest college towns to buy property right now.
1. Rochester, New York
While Rochester has previously earned a bad reputation for being an under-developed industry town, it’s slowly but surely making a new name for itself. Rochester is home to a few colleges like the University of Rochester, Nazareth College, and the Rochester Institute of Technology. All of these schools are bringing new life to the area which is now a hotbed for industry, jobs, and real estate.
If you’re able to find a home in the tight Rochester market, you’ll likely get more for your money. With large single family homes for sale with a median list price of $114,900, this is definitely one of the cheapest spots in the country to buy a home.
2. Chapel Hill, North Carolina
North Carolina, in general, is an affordable state to buy a house, but Chapel Hill, in particular, is a popular choice because of the large number of college students. This is a young, hip area with a thriving business scene. Housing prices are still low, especially in student areas, so now’s the time to jump on this trend before it becomes less affordable for new investors.
3. Atlanta, Georgia
Atlanta is home to many colleges like Georgia Institute of Technology, Emory University, and Georgia State University. If you’re willing to do some searching, you can find a great bargain in the Atlanta area concentrated around one of their major colleges. Atlanta is quickly shifting to a buyer’s market.
More importantly, as these colleges become more competitive, populations continue to rise. Atlanta is full of economic opportunities, walkable neighborhoods, and affordable homes. In particular, most buyers are looking to pick up homes near Georgia Institute of Technology.
4. Houston, Texas
Rice University in Houston is quickly becoming a popular destination for students. Affordable home prices in Texas make it the prime spot for investors to strike fast. The median list price for properties might be higher at around $240,000, but Houston is ranked as one of the fastest growing cities in the country, especially for younger people in search of educational opportunities.
5. Minneapolis, Minnesota
As more students look for affordable cities to call home for their college years, Minneapolis has gained significant popularity. Home to the University of Minnesota, Twin Cities, thousands of new students are flocking to this area each year. The Twin Cities have been on the top of real estate lists for years now, and this comes as no surprise with the rising median rental prices.
Minneapolis boasts the best rental ROI in the Midwest not to mention one of the best in the country. There’s an influx of new renters looking for quality properties, and that means you’re unlikely to face high turnover or vacancies.
Whether you’re a first-time investor or an experience professional, college towns are almost always a good idea. They’re affordable, full of opportunities, and home to a range of renters. No matter your budget, you can find something that’s right for you in one of the college towns above.
Like any investment, make sure you have a strong plan before you dive in. There’s a lot to know about owning and maintaining a property even if you plan to live in it yourself. However, you can’t go wrong with one of these cities.