Why College Towns Are One of the Smartest Places to Invest in Real Estate
How Parents, Students, and Investors Are Turning College Housing into Long-Term Financial Wins
When you think about real estate investment, your first thought might not be a college campus—but it should be. College towns are among the most opportunity-rich markets in the country. At Hospitality Network Group at Keller Williams, we specialize in helping our clients make smart moves in high-potential markets—and college towns are at the top of that list.
Whether you're a parent looking for housing options for your student, a seasoned investor searching for reliable cash flow, or even a student thinking ahead about building wealth early, college towns offer a unique blend of stability, demand, and long-term value.
Here’s why this niche market is getting so much attention—and why now might be the perfect time to invest.
Colleges Are Growing—But Housing Isn’t
Across the country, many colleges and universities are expanding rapidly. However, on-campus housing hasn’t always kept pace. While smaller colleges may provide dorm-style living for all four years, most large universities only guarantee on-campus housing for freshmen.
This means thousands of students are pushed into the rental market each year—creating consistent and growing demand for off-campus housing. For investors and parents alike, this presents an incredible opportunity to provide high-demand housing while generating consistent income.
Spotlight on Tuscaloosa: A Top Market for Real Estate Investment
Take Tuscaloosa, Alabama, for example. Home to the University of Alabama, this city has earned a reputation as one of the best college towns in the country for real estate investment. With over 40,000 enrolled students and a nationally recognized football program, Tuscaloosa experiences significant surges in demand for housing—both long-term and short-term.
Game days, in particular, create a surge in visitors. On major SEC weekends, more than 100,000 people crowd into the stadium, and nearly 200,000 gather on campus. Hotel rooms during these events can easily exceed $3,000 per night with multi-night minimums, making homeownership near campus a smart, profitable alternative.
Parents Are Becoming Strategic Buyers
A growing number of parents are choosing to buy properties in college towns—often for their children to live in during school, while also renting to other students or holding the property as a long-term asset.
This approach offers several advantages:
• Significant savings on rent over four years
• The potential for steady rental income
• Long-term equity growth and appreciation
In many cases, parents find they can sell the property after graduation and walk away with a solid return on their investment.
The Rise of Game Day and Short-Term Rentals
In addition to student housing, short-term rentals have become a major trend in college towns. Sporting events, graduations, family weekends, and campus activities draw crowds throughout the year.
Owning a property within close proximity to campus allows you to capitalize on these high-traffic events by offering short-term stays—often at a premium price. For some investors, a few weekends of rental income can cover months of mortgage payments.
Ready to unlock the secrets of college town investing? Tune in to The College Real Estate Coach—new episodes drop every Thursday!
This blog is just the beginning. In our podcast, The College Real Estate Coach, we’ll be exploring:
• Real-world stories from investors and parents who are building wealth through college town real estate
• Financial breakdowns of how these investments perform
• Tips from students who’ve purchased property while still in school
Whether you're exploring this path for your student, expanding your real estate portfolio, or simply curious about the possibilities, we’re here to help you navigate the world of college town real estate with confidence.
Subscribe to the podcast here.
Ready to Learn More?
If you're interested in buying in a college town or want to learn more about how to leverage this investment strategy, we’d love to connect. At the Hospitality Network Group at Keller Williams, we specialize in helping families and investors find, evaluate, and purchase properties in high-potential college markets across the country.
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.
Contact us today to learn how we can help you achieve your real estate dreams.
