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Chicago’s Colleges Could Make Consumers Invest in Real Estate

by Chicago Agent

Fall and the back-to-school season is often characterized by parents and students getting last-minute school supplies, books and, for college-bound students, all the dorm necessities. However, this year, parents with college-age students may consider a different kind of bac- to-school purchase – a rental property.

The University of Chicago isn't only attracting students to our city.

The University of Chicago isn't only attracting students to our city.

Move, Inc. released a list of 10 college towns that might just make the grade. College towns were selected based on the leading universities featured in the US News Rankings and Reviews list of best colleges in 2011.

In the next two years, real estate investors – including some parents of students attending colleges within these college town markets – are expected to outnumber traditional homebuyers in these local markets by three to one. In addition, 56.5 percent plan to take advantage of the college towns and use their investments as rental properties, according to a national survey conducted by Move, Inc.

“Local markets with universities or colleges can be an attractive option for many local real estate investors,” said Move, Inc., Chief Executive Officer Steve Berkowitz. “Housing demand in college towns is generally high and vacancy rates are usually low. Combine the supply and demand ratio with rising admissions and the five percent rise in rental rates expected by the end of the year,(2) and rental property in college towns can be a smart option for the right investor.”

 

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Comments

  • Jill Kipnis says:

    Thanks for this article. Chicago is a top college town for real estate investing for a number of reasons. Average rental rates in June 2011 were $1,780 for a two bedroom and $2,074 for a three or more bedroom unit. Compare that to a mortgage payment on a home at the median list price–which be around $820 with a 20% down payment of $40,000 at current mortgage rates for a 30-year fixed loan.

    Chicago was also the No. 1 most searched metro in the U.S. in June, according to Realtor.com, and is the location of the 12th best college in the country–the Unviersity of Chicago. For more information: http://bit.ly/qdbrVM

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