Realtor.com® Names 2017 Hottest College Investment Towns Ahead of National College Decision Day

SANTA CLARA, Calif., April 26, 2017 /PRNewswire/ -- Realtor.com^®, a leading online real estate destination operated by News Corp [NASDAQ: NWS, NWSA]; [ASX: NWS, NWSLV] subsidiary Move, Inc., today announced its top picks for college towns in the U.S. where it is less expensive to buy versus rent as high school seniors and their parents around the country gear up for National Decision Day on May 1.

To compile the list, realtor.com^® compared average monthly rental costs to the average monthly home payment (mortgage, property taxes and insurance) in markets surrounding notable colleges and universities. Baltimore, home of Johns Hopkins University, ranked as the top market to buy versus rent with an average monthly homeownership cost of $775, in comparison to a $1,443 monthly rental cost.

"College tuition in the U.S. has increased more than 60 percent over the last 10 years," said Javier Vivas, manager of economic research for realtor.com^®. "Assuming you can afford the down payment, owning a home that your child can live in while at school can help cut the high costs of off campus living. It also makes a great future investment as a steady flow of students into the town continues to drive demand."

Realtor.com®'s Top College Towns

It takes an average of 21 percent of local median household income to purchase a home in these counties, compared to 28 percent for the U.S. overall. Yet, renting in these markets is more expensive, taking an average 27 percent of income compared to 25 percent for the U.S.

These markets have strong local economies and healthy real estate fundamentals to support at least average home price appreciation. Of these markets, all but Baltimore and Champaign are seeing the median age of inventory decline, while Champaign and Swarthmore see median age of inventory longer than the U.S. These markets represent strong millennial buying trends as well, with an average market share of 41 percent for people under 35, compared to 38 percent to the U.S. overall. Only Champaign, West Lafayette, and College Park see under a 38 percent share for millennials. 

Methodology:
Realtor.com defined college towns as counties with at least one four-year college and sizable student housing population. Areas were then ranked based on monthly money saved from owning instead of renting. Monthly mortgage rates were calculated based on the median listed homes on realtor.com (assuming a 20 percent down payment) and the median rent for the county.

Facts About Realtor.com^®'s Top College Towns

1. Johns Hopkins University - Baltimore
Home ownership cost: $775       
Rent payment: $1,443

Local housing market: The median price for a home in Baltimore County is $131,400, well below the national median of $260,000, and has an average of three bedrooms and two bathrooms. Charles Village, a small neighborhood located south east of campus, is popular for students. Another great area for investors is in and around the recently revitalized East Baltimore Development Inc. project.

2. University of Notre Dame – South Bend
Home ownership cost: $470
Rental payment: $856

Local housing market: With a median home price of $89,900, the area surrounding University of Notre Dame offers the most affordable home prices on the list. When comparing the average ownership cost and rental payment, parent investors could potentially save $386 a month, which does not account for their student living with roommates. South Bend is a popular student neighborhood around Notre Dame where housing stretches the dollar and offers multiple bedrooms with affordable prices.

3. Purdue University – West Lafayette
Home ownership cost: $666       
Rent payment: $970

Local housing market: Homes near Purdue University have an average price of $131,000 and offer an average of three bedrooms and two bathrooms. Parents looking to invest may want to consider the Chauncey Hill area, which is popular with students due to its close proximity to campus and overall walkability.

4. Michigan State University – East Lansing
Home ownership cost: $628
Rent payment: $930

Local housing market: The median price for a home in Ingham County is $107,225 and has an average of three bedrooms and two bathrooms. Downtown East Lansing is popular among younger undergraduate students who want to be close to campus, as well as bars and restaurants. Parents of graduate students may want to consider the Groeseck neighborhood, which is better for those looking for a quieter, more relaxed environment.

5. University of Pennsylvania – Philadelphia
Home ownership cost: $964
Rent payment: $1,252

Local housing market: The average home surrounding University of Pennsylvania is $167,950, well below the national median, and offers three bedrooms and two bathrooms. With an average monthly rent of more than $1,200, parents looking to invest in real estate have the potential for significant income. Point Breeze and Passyunk are popular neighborhoods for undergraduate students because of their proximity to campus, as well as their general walkability.

6. University of Maryland – College Park
Home ownership cost: $1,699
Rent payment: $1,971

Local housing market: University of Maryland has the highest average home price on the list, with a median of $300,447, as well as the highest average monthly rent of $1,971. While more costly, the average home has four bedrooms and three bathrooms, which gives parents more opportunities for rental income. Parent investors should consider buying in popular student areas of College Park Woods and Hollywood on the Hill.

7. Case Western Reserve University – Cleveland
Home ownership cost: $677
Rent payment: $866

Local housing market: Homes in Cuyahoga County have a median price of $120,574, well below the national average, and offer an average of three bedrooms and two bathrooms. Coventry, North Coventry, and Cedar-Fairmount are popular neighborhoods among students because of their easy access to shopping and grocery stores as well as nightlife.

8. Swarthmore College – Swarthmore
Home ownership cost: $1,128
Rent payment: $1,252

Popular student neighborhoods: The median price home in Delaware County is $189,125 and offers three bedrooms and two bathrooms. Parents of students attending Swathmore College may want to consider an investment in the revitalized downtown that is attracting large groups of students or the nearby borough of Media, which offers larger homes with a little more peace and quiet.

9. Marquette University – Milwaukee
Home ownership cost: $856
Rent payment: $954

Local housing market: Parents considering an investment around Marquette University will pay an average of $135,450 for three bedrooms and two bathrooms. Beerline, a small neighborhood that borders the north side of the Milwaukee River is home to many new developments ready for investors, while the Lower East Side neighborhood offers single-family homes, high-rise apartment complexes and everything in between.

10. University of Illinois – Champaign
Home ownership cost: $875
Rent payment: $956

Local housing market: The median priced home in Champaign County is $149,075 with three bedrooms and two bathrooms. To the west of campus lies "Senior Land," which is highly popular with students as well as anything on Green Street between Neil Street and Lincoln Avenue. Downtown Champaign has been revitalized with a vibrant live music scene and a host of bars and restaurants to please just about anyone.

About realtor.com®
Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

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Lexie Puckett Holbert – [email protected]

SOURCE realtor.com

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