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College Kids Make Housing Market Smart

Those darn college kids are at it again, this time, they are keeping property values high around some college campuses. According to BusinessWeek.com, “Property values in college towns are holding strong and can make a good investment whether you’re a parent, an investor, or just looking to relocate.” Some claim that these college town markets are recession-resistant as enrollments—especially at large public universities–remain high.

In Palo Alto, Calif., which is home to portions of Stanford University, median home prices increased 15% in 2007 compared with 2006, according to OnBoard. (Overall real estate prices in California dropped 9%) The area benefits not only from the university but also from its proximity to Silicon Valley. Similarly, Austin, Tex., home of the University of Texas, saw a 6% price increase in 2007, while home prices in the rest of the state remained flat.

We all know, there is no such thing as a fool-proof investment (think dot com, think sub prime, think no-money down loans, think of drunk students punching holes through walls and growing weed in the closet).

Thinking about buying some land/housing around a California college town–how bout UC Merced where the land is plentiful, but enrollment is struggling?

College Towns: Still a Smart Investment [Yahoo Real Estate]
*image courtesy of google maps

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One Response

  1. az says:

    Looking for off campus houseing for summer or fall semester…Transferring as a Jr.

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