Homeowners have 40x the wealth of renters.

That’s not just a stat—it’s a wake-up call.

At first glance, renting seems easier—especially in the chaos of moving your child into college or starting fresh in a new city. But if you’re a parent of a college student (or a student yourself) considering housing options, you might be surprised to learn just how much wealth you can build by buying real estate instead of renting in a college town.

Let’s break it down.

Why Buying Real Estate in a College Town Makes Sense

According to a recent study, the average homeowner has 40 times the wealth of average renter. Why? Because every mortgage payment builds equity—and equity builds wealth.

When you rent, that monthly check goes straight to someone else’s pocket. When you own, a portion of your payment goes toward the principal—which is essentially transferring money from your left pocket to your right, as Ken would say. That’s your equity, your investment, and your financial future.

And in college towns, where housing demand stays strong year after year, appreciation can add even more value.

When Is Renting the Right Move?

Of course, there are times when renting makes more sense:

• You need to move quickly and don’t have time for the buying process
• You’re facing financial instability or uncertain job/location changes in the next 6–12 months
• You’re not ready to take on the responsibilities of homeownership

But even then, a short-term rental with a long-term plan to buy can still be a smart move.

What It Takes to Buy Real Estate as a Student or Parent

Buying real estate isn’t just for full-time professionals. Students and their families have more options than ever:

• FHA Loans – Just 3.5% down payment required
• Professional Loans – Tailored for doctors, attorneys, and other high-earning professions
• USDA Loans – Zero down payment (must be in rural areas)
• VA Loans – For veterans and military families

Even better? Parents can co-sign or invest in the property with their student, turning it into a dual-purpose asset: a home for their child and a long-term rental or Airbnb opportunity after graduation.

Parents: Think of It as “An Advance on the Inheritance”

Helping your child buy now can have a profound long-term impact on their financial stability. If you’re financially able, consider this mindset:

“Why not give them part of their inheritance now, when it will set them up for success?”

Owning property during college isn’t just a smart move—it can be life-changing.

Real Example: $250K Property vs. Rent

Let’s say you're considering buying a $250,000 property. Over 5 years, with a conservative 5% annual appreciation (which aligns with 30-year historical averages), that home could be worth over $300,000—gaining $50,000 in equity.

Meanwhile, rent is likely rising at 5% a year—and you’re building wealth for your landlord instead of yourself.

Bonus: Monthly Payment Stability

Unlike rent, your mortgage doesn’t go up every year. And if interest rates drop, refinancing could actually lower your monthly payment.

That means predictable costs, long-term savings, and the ability to budget more effectively than the average renter.

Start Building Wealth Today

Whether you're a parent looking to invest or a student or young professional hoping to stop renting, the bottom line is simple: Real estate in a college town is more than just housing—it's a wealth-building opportunity.

Want to know if it makes sense for your family? Let’s talk. We’ll run the numbers, connect you with trusted lenders, and help you explore your options—without pressure, just guidance.

Ready to stop renting and start building equity?

Contact us today and take the first step toward financial freedom in college—and beyond.

Hospitality Network Group at Keller Williams – Client focused . Performance driven

The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey.