Location, Location, Location
The old real estate truism of “Location, location, location!” being hugely important holds true for not only real estate sales, but for rentals as well. It goes without saying that the more desirable the location, the higher the price will be. When speaking of college housing for students, there has historically been a premium on rents close to campus. How much higher, or what is that premium, you ask? Well, Brian Kerschner, a real estate economist with CoStar Group, has tried to hone in on that number. His team evaluated multifamily data of 10 college campus areas across the country to determine the relationship between rents and campus proximity. His findings identified that properties that were located less than 1.5 miles away from campus had average higher rents than those that were 5 miles away. The most significant however was data supporting a going premium of as much as 40% when the rental is located less than a ½ mile radius to campus. For a more detailed look at his study, follow this link from Realtor Magazine.
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