Why It Pays To Invest Near College Campuses

Statistics seem to favor investment potential for homes in college communities at present, particularly with oversupply issues still dogging the housing sector and average times on the market ballooning to months instead of weeks.

College enrollment is expected to rise 15% over the next decade, according to the National Center for Education Statistics. And yes, some institutions are responding to increased housing needs by building dorms, while developers are hustling to construct apartments in nearby infill sites, if they can find them. But the housing stock in mature college communities will always be limited, especially if there are such elements as medical schools, research labs or technology facilities that draw additional nonstudent employment.

Unlike some neighborhoods, where a disproportionate number of homes that are converted into rentals may signify an impending downturn, that's generally not a worry in college neighborhoods. You are placing yourself in a community where there is a constant churn of demand every semester. But you'll most likely pay a premium for your house.