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
Ranking
|
College
Town
|
Median County Buying
Cost
(mortgage +taxes +
insurance)
|
Median
County
Rent
Payment
|
1
|
Baltimore
(Johns Hopkins University)
|
$775
|
$1,443
|
2
|
South Bend, Ind.
(University of Notre Dame)
|
$470
|
$856
|
3
|
West Lafayette, Ind.
(Purdue University)
|
$666
|
$970
|
4
|
East Lansing, Mich.
(Michigan State University)
|
$628
|
$930
|
5
|
Philadelphia
(University of Pennsylvania)
|
$964
|
$1,252
|
6
|
College Park, Md.
(University of Maryland)
|
$1,699
|
$1,971
|
7
|
Cleveland (Case
Western Reserve University)
|
$677
|
$866
|
8
|
Swarthmore, Pa.
(Swarthmore College)
|
$1,128
|
$1,252
|
9
|
Milwaukee (Marquette
University)
|
$856
|
$954
|
10
|
Champaign, Ill.
(University of Illinois at Urbana-Champaign)
|
$875
|
$956
|
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®.
Media Contact:
Realtor.com®
Lexie Puckett Holbert –
lexie.puckett@move.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/realtorcom-names-2017-hottest-college-investment-towns-ahead-of-national-college-decision-day-300445899.html
SOURCE realtor.com