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.

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Honoring History, Inspiring Hope: Supporting Alabama’s First Public Holocaust Memorial

April 30, 2025

At Hospitality Network Group at Keller Williams, we believe our mission goes beyond real estate—it’s about investing in people, purpose, and progress. Whether through homeownership or community service, we are committed to helping neighborhoods grow in meaningful and lasting ways. Recently, Recently, we took great pride to be part of an initiative that reflects those very values: the creation of Alabama’s first public Holocaust Memorial, now open to all at Birmingham’s historic Elmwood Cemetery. This powerful new monument was spearheaded by Barbara Bonfield, a visionary leader whose dedication and persistence brought the project to life ( Barbara’s moving interview can be seen in the dedication video ) . Funded by members of Birmingham’s Temple Beth El, including Vikki and Ken Grodner and others in the greater Birmingham community , the memorial stands as a tribute not only to the memory of those who perished in the Holocaust, but also to the survivors who found the strength to rebuild their lives and legacies in new places—including right here in Alabama. When Terry Holzman, a friend and client, approached Ken and Vikki to support this effort, they immediately felt called to contribute. Ken joined the initiative with gratitude and purpose—helping lead outreach efforts and encourage others to support this historic moment. The result is an 8-foot-tall, 700-pound steel sculpture in the form of a dead tree, resting on rusted railroad tracks. The tracks—originally used during the era of slavery in Alabama—evoke a chilling duality: a local legacy of oppression and the haunting memory of the trains that carried millions to Nazi extermination camps. In its starkness, the sculpture demands reflection. Yet, in its permanence, it offers a call to remember, learn, and ensure “never again” truly means never again. The memorial is not just a place of mourning—it is also a place of resilience and renewal. It honors those who survived the Holocaust, rebuilt their lives, started families, and continued their traditions in the face of unimaginable loss. For Ken, Vikki, and all of us at Hospitality Network Group, this project exemplifies our mission to uplift and support causes that enrich the communities we serve. We’re proud to stand behind efforts like this that preserve history, promote understanding, and inspire future generations to act with compassion and courage. We invite you to visit the memorial at Elmwood Cemetery and to learn more by reading the Alabama News Center’s coverage. Thank you to Barbara Bonfield, Terry Holzman, and all those who contributed to making this vision a reality. Together, we’re not only remembering the past—we’re building a stronger future that safeguards pride, protects honor, and upholds the integrity of all people. 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.

New Trend in Wealth Transfer: How Parents and Grandparents Are Transferring Wealth to Their Adult Children Through Real Estate

April 24, 2025

As real estate continues to be one of the most effective tools for building and preserving wealth, many families are strategically using homeownership to transfer financial security to the next generation. By leveraging real estate investments, parents can provide both immediate support and long-term financial stability for their children. With home prices on the rise and tax laws evolving, proactive wealth transfer strategies can maximize benefits while minimizing tax burdens. Rather than waiting to pass on assets through inheritance, many parents are choosing to transfer wealth now by helping their children acquire property and enjoy it additional years of the benefit. Here’s how they’re making it happen. 1. Gifting a Home with a Structured Loan Forgiveness Plan A married couple can loan their single child $500,000 (or any other amount) to purchase a home, following the guidelines established by the IRS. This method allows parents to maintain financial control while gradually transferring wealth. Here’s how it works: The parents forgive an amount equal to the maximum annual gift tax exemption per parent ($19,000 in 2025) on the loan, totaling $38,000 per year. This process can be repeated annually until the full loan amount is forgiven. If the child is married, their spouse can also receive the same gift amount, effectively doubling the annual forgiveness to $76,000 per year. Over time, this strategy allows parents to gift a home while minimizing tax implications. 2. Buying a Home in Cash and Gifting It For parents who have the financial means, purchasing a home outright and gifting it to their child can be a tax-efficient way to transfer wealth. Here’s how it works: A married couple buys their child a $500,000 home in cash and gifts it to them. They file the required gift tax return, which falls under the lifetime gift and estate tax exclusion of $27.98 million per married couple (for 2025). This strategy allows for the immediate transfer of homeownership without requiring the child to take on a mortgage. Important Note: The lifetime gift and estate tax exclusion is set to drop significantly in 2026, from $13.99 million per individual ($27.98M per couple) to approximately $5 million per individual. This means high-net-worth families should consider making large gifts before the exemption decreases. Why Real Estate Is a Smart Wealth Transfer Strategy 1. Tax Advantages By structuring gifts properly, families can leverage the annual gift tax exclusion and lifetime gift tax exemption to pass on real estate with minimal tax consequences. Additionally, if the child holds onto the property, they may benefit from step-up in basis rules if the home is inherited later. 2. Long-Term Wealth Growth Real estate historically appreciates in value (on average 5% per year over the last 30 years), making it an excellent asset for wealth accumulation. By helping children buy a home now, families position them for financial growth through home equity. 3. Immediate Use & Stability Unlike other investments, real estate provides immediate utility—offering a stable place to live while also serving as a valuable financial asset. Start Building Generational Wealth with Real Estate Today As wealth transfer strategies evolve, real estate continues to be a cornerstone of financial planning for families. Whether through structured loans, gift exemptions, or outright purchases, helping your adult children acquire property now can be a powerful way to secure their financial future. If you're considering using real estate as a generational wealth transfer tool, contact The Hospitality Network Group at Keller Williams today. Our team specializes in guiding families through smart real estate investments that maximize long-term wealth potential. 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. Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available in this blog is for general informational purposes only. You should consult your own legal, financial, or tax advisor and verify all information to your satisfaction prior to taking any action.