The Closer to Campus, the Higher the Rent
December 9, 2013
Multifamily properties near college campuses often can equate to higher returns, and investors haven’t overlooked this sector for steady profits. But how close do you have to be to the college campus to see the highest returns?
CoStar evaluated multifamily data of 10 college campuses to find the relationship between rents and campus proximity.
Researchers found that properties less than 1.5 miles away from one of the 10 college campuses evaluated saw average rents that were higher than rents five miles away. However, the rent premiums were modest up to three quarters of mile away, CoStar reports.
Within a half mile and quarter-mile from campus, the average rent commands a 40 percent premium compared to a five-mile radius.
Therefore, students who are wanting to have a walking commute to school of 13.6 minutes or less will need to expect to pay a premium on rents, notes Brian Kerschner, a real estate economist with CoStar Group.
Source: “Searching for Higher Rents Near Higher Education,” CoStar Group (Dec. 9, 2013)
Updated: September 13, 2019