Where Off-Campus Living is Most and Least Expensive
Digested from Home Union
In college towns in costal markets, off-campus rents are highest. The best deals off campus can be found in the Sunbelt.
As school starts around the country, Home Union decided to examine which markets had the most and least expensive off-campus rent.
Not surprisingly, the highest cost off-campus rents are found at schools in expensive metros, such as University of California, Los Angeles, Stanford University in Stanford, Calif., Georgetown University in Washington, D.C., George Washington University in Washington, D.C., and Michigan State University in East Lansing, Mich.
“Tuition for many colleges and universities is soaring, forcing students and their families to utilize single-family rentals [SFRs] and other living situations off-campus,” says Steve Hovland, director of research for HomeUnion. “To minimize living expenses, students in high-rent areas like the Bay Area, Boston and Washington, D.C., can rent properties further than two miles from campus or choose to have roommates in a rental home.”
If housing prices are a major concern, students can also look to schools in the Sunbelt markets of Texas and Florida, such as Texas State University at San Marcos, Valencia College in Orlando, Fla., the University of South Florida in Tampa, the University of Texas at Arlington and the University of North Texas at Denton in Denton.
“It’s not surprising that many of the institutions in our study are located in Sunbelt markets – Texas and Florida,” remarks Steve Hovland, director of research for HomeUnion. “Rents are still very reasonable near campuses that are highly sought-after among single-family rental investors, such as Austin, Orlando and Dallas. Real estate investors are bullish on these investment markets due to attractive entry prices and yields. They all have solid cap rates above 4 and 5 percent, and entry prices below $300,000.”