If you are looking for a good, “safe” real estate investment, properties in college-towns are certainly worth considering. While these areas typically are more expensive, the benefits may very well outweigh that fact.
Real estate prices, like anything else, are a function of supply and demand. Demand in college towns is at least steadier, if not more destined to grow, than the average real estate market. Other factors that increase the demand are:

• Student body growth. According to the Department of Education, college enrollments are expected to rise by almost 1.6 million students, or 15%, over the next 10 years.

• Graduate students. The number of graduate and professional students is growing even faster – almost 25%. Many are married, or come from abroad, and are looking for a 2-3 year lease.

• Professors and support staff at the university need housing as well.

• In some areas of the country, college towns are desirable for retirees, who are looking for a mentally and physically active environment.

• If you invest in the town where your son or daughter is attending school – it saves the $5,000 or so in “room fees” you’d otherwise pay for in a dorm. (You could even collect some rent if your child has roommates!)

On the other side of the equation, the supply is usually constrained by strict zoning and growth controls, common in most college towns. Both factors work together to provide your margin of safety and return on your investment. Nashville is home to many colleges and universities, making for some great opportunities. Vanderbilt, Belmont, Lipscomb, MTSU, Fisk, TSU, and others – opens up many neighborhoods to explore.

Posted By: Chris Fuller / Sue Ray

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