College Park rentals are a good investment, according to an analysis by Redfin.
The online real estate services firm studied college towns associated with the 310 schools listed in the most recent U.S. News & World Report national ranking. They then cross-referenced tuition costs, median list price for nearby homes and the Walk Score.
The home of the University of Maryland, College Park, came in 15th nationally, with a median list price of $289,900, and tuition and fees of $32,045, a ranking of 60th on the U.S. News list and a Walk Score of 69.
That was competitive with Nashville, home of Vanderbilt University; and Madison, Wisconsin, home of the University of Wisconsin-Madison.
Redfin’s argument was that college towns are good for investment properties because of the regular influx of new students.
“The pool of potential tenants is also stable with new students coming in every year, so a property owner really doesn’t have to worry about where they will find the next tenant,” said Redfin agent Rory Haigler.
College towns are also good investments because they have a stable local economy and lots of good options for music and dining. For College Park rentals, that’s only going to improve.
Already, the area has seen the opening of MilkBoy ArtHouse; a $110 million apartment, retail and dining project on Guilford Drive; a $115 million hotel and conference center; new apartments proposed near the College Park Metro; and the Purple Line potentially coming right through town.
Historically, College Park also had something of a reputation as a “commuter school,” a place where students might drive in from their parents’ homes nearby, but as its student body has become more national and even international, a lot more high-end student housing has sprung up along Route 1, which should only drive the investment rentals market even more.