{"id":188983,"date":"2026-08-13T11:03:32","date_gmt":"2026-08-13T17:03:32","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=188983"},"modified":"2026-08-13T11:03:33","modified_gmt":"2026-08-13T17:03:33","slug":"why-inland-college-towns-are-real-estates-hottest-overlooked-sector","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-inland-college-towns-are-real-estates-hottest-overlooked-sector","title":{"rendered":"Why Inland College Towns Are Real Estate&#8217;s Hottest Overlooked Sector"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">You\u2019re about to get schooled on where to invest\u2014literally. Turns out one of the best places to park your real estate investment dollars is near the halls of higher education. But not in just any college town, however; the best investments are in in<\/span><span data-preserver-spaces=\"true\">land towns.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Why so specific? That\u2019s according to the data experts at Redfin, who have crunched the numbers and seen some startling trends.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Yingqi Xu, Redfin&#8217;s senior economist, said in the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/college-town-housing-data-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Redfin press release<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;Many of the college towns with home prices rising the fastest are also among the most affordable places to buy a home right now. That combination is attracting buyers who have been priced out of larger metros, while universities continue to provide a reliable foundation of demand. Meanwhile, many of the most expensive college towns are experiencing price declines as high mortgage rates and elevated home prices make buyers there more cautious.\u201d<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">College towns bucking national trends include Morgantown, West Virginia, home of West Virginia University; Syracuse, New York, where you\u2019ll find Syracuse University; and Tuscaloosa, Alabama, where the University of Alabama is, all of which are anchored by large universities and have enjoyed double-digit home price increases, according to a Redfin analysis of MLS data from the three months ending May 26.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The criteria analysis was as follows:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">A U.S.-based college town with a minimum student population of 10%.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Students must be enrolled in a four-year, accredited university.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">It must be at least 30 miles away from a metro with a population of over 1 million.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Other college towns that made it to the top of the list include State College, Pennsylvania (Pennsylvania State University), where homes went under contract in just five days, compared with 49 days nationwide. The double-digit home price increases (State College saw a 10.6% year-over-year gain to $459,050 in May) mean that in many places, affordability is getting squeezed.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Why College Towns Are So Appealing<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Part of the appeal <\/span><span data-preserver-spaces=\"true\">for<\/span><span data-preserver-spaces=\"true\"> towns hosting major colleges is the high <\/span><span data-preserver-spaces=\"true\">rate of enrollment<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> According to a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.capright.com\/student-housing-market-update-march-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> March 2026 student housing market update<\/span><\/a><span data-preserver-spaces=\"true\"> from real estate consulting firm Capright, total U.S. college enrollment reached 19.4 million students in fall 2025, a 1% year-over-year increase and the highest level since 2018.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Consistent enrollment translates into ongoing demand for housing, with 52.3% of student beds across Capright\u2019s tracked campuses already leased for the 2026-2027 academic year, up from 45.6% from the previous year. This doesn\u2019t include the off-campus accommodation often preferred by non-freshman students and those studying postgraduate degrees, as well as the many staff employed by the universities and numerous tertiary businesses based around the campuses, such as retail and medical centers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This was reinforced by real estate software management company<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realpage.com\/analytics\/january-2026-student-housing-update\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> RealPage<\/span><\/a><span data-preserver-spaces=\"true\">, which tracks student housing nationally. It found that properties more than a mile from campus had 39.3% of beds pre-leased by January.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThings are really looking up for some of the largest universities in the country, especially in the South,\u201d Capright director Jonathan Rivera said in a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.capright.com\/student-housing-with-jonathan-rivera-march-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> March student housing update<\/span><\/a><span data-preserver-spaces=\"true\">. \u201cYou\u2019re seeing a lot of population growth, which has helped to grow a lot of universities. Student housing is a subset of housing generally, and it will continue to be in high demand while the amount of housing continues to be constrained.\u201d<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Parallels With the National Housing Market<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The most affordable college towns in the country <\/span><span data-preserver-spaces=\"true\">share a parallel with<\/span><span data-preserver-spaces=\"true\"> the national housing market, where the best deals are <\/span><span data-preserver-spaces=\"true\">to be<\/span><span data-preserver-spaces=\"true\"> found in the Midwest and South.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to Redfin\u2019s <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/college-town-housing-data-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">July 2026 report,<\/span><\/a><span data-preserver-spaces=\"true\"> Dayton, Ohio (Wright State University and the University of Dayton); Syracuse, New York; and Mount Pleasant, Michigan (Central Michigan University), all have median house prices under $185,000, although only Syracuse has enjoyed 12.5% home sale growth, while the others have seen declines.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Part of Syracuse\u2019s growth may be due to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.syr.gov\/Government\/Mayors-of-Syracuse\/54th-Mayor-Ben-Walsh\/Mayor-Walsh-Major-Initiatives\/Syracuse-Surge\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">technological and manufacturing investment<\/span><\/a><span data-preserver-spaces=\"true\">. Micron, a designer and manufacturer of computer memory and data storage chips, has agreed to invest<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/investors.micron.com\/news-releases\/news-release-details\/micron-accelerates-us-investments-pours-first-concrete-new-york\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> $250 billion in the area<\/span><\/a><span data-preserver-spaces=\"true\"> through 2035. This is largely fueled by the rising demand for memory in the AI era, the company says.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Policy Shifts and the Opening for Small Landlords<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-the-21st-century-road-to-housing-act-could-help-real-estate-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">recent government policy shift<\/span><\/a><span data-preserver-spaces=\"true\"> to bar corporate investors that own <\/span><span data-preserver-spaces=\"true\">over<\/span><span data-preserver-spaces=\"true\"> 350 single-family <\/span><span data-preserver-spaces=\"true\">houses<\/span><span data-preserver-spaces=\"true\"> from buying homes has been criticized in some quarters for not moving the needle enough on single-family housing, <\/span><span data-preserver-spaces=\"true\">as<\/span><span data-preserver-spaces=\"true\"> small investors already own the majority.<\/span><span data-preserver-spaces=\"true\"> However, student housing is where the policy could have an effect.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For smaller buyers, the practical effect means that deep-pocketed institutions will be constrained from snapping up single-family homes in tenant-heavy college towns for buying and holding. Though they will still be allowed to buy, fix up, and sell, this leaves a gaping opportunity in many markets.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Strategy for Mom-and-Pop Investors in Inland College Markets<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Redfin\u2019s college-town study is a good place to start looking for future investments. <\/span><span data-preserver-spaces=\"true\">Pinpointing affordable markets with high price growth and planned development (such as Syracuse), along with <\/span><span data-preserver-spaces=\"true\">studying stats<\/span><span data-preserver-spaces=\"true\"> from RealPage and <\/span><span data-preserver-spaces=\"true\">Capright<\/span><span data-preserver-spaces=\"true\">, allows landlords to gauge occupancy over the next year.<\/span><span data-preserver-spaces=\"true\"> This enables a fairly accurate projection of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\"> targets.<\/span><\/p>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.capright.com\/student-housing-market-update-march-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Capright<\/span><\/a><span data-preserver-spaces=\"true\"> estimates that national student housing <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/cap-rate-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cap rates<\/span><\/a><span data-preserver-spaces=\"true\"> currently sit in the 5.5% to 6.5% range, roughly 25 to 50 basis points higher than conventional <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/buying-multifamily\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\">, which translates into better yields for small investors comfortable with managing yearly turnover and leasing cycles attuned to the academic year.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Part of the appeal <\/span><span data-preserver-spaces=\"true\">for<\/span><span data-preserver-spaces=\"true\"> single-family student housing is the ability for small landlords to rent <\/span><span data-preserver-spaces=\"true\">by the room<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">thus<\/span><span data-preserver-spaces=\"true\"> boosting cash flow beyond <\/span><span data-preserver-spaces=\"true\">usual<\/span><span data-preserver-spaces=\"true\"> single-tenant occupancy.<\/span> <span data-preserver-spaces=\"true\">It requires specialized leases, parental guarantees, and careful property management to ensure all tenants pay their way <\/span><span data-preserver-spaces=\"true\">and<\/span> <span data-preserver-spaces=\"true\">those<\/span><span data-preserver-spaces=\"true\"> who don\u2019t can be replaced or have their feet held to the fire by contacting their parents or <\/span><span data-preserver-spaces=\"true\">evicting<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Don\u2019t Conflate High Demand with a Good Investment<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">One thing many student housing reports fail to mention is that a university\u2019s enrollment is often tied to its academic success, so investors need to look at academic trends, outside corporate investment (for example, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cmu.edu\/news\/stories\/archives\/2025\/March\/google-partnership\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Alphabet<\/span><\/a><span data-preserver-spaces=\"true\"> and<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cmu.edu\/news\/stories\/archives\/2024\/october\/cmu-and-nvidia-to-lead-joint-research-center-for-robotics-autonomy-ai\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Nvidia<\/span><\/a><span data-preserver-spaces=\"true\"> are investors in Carnegie Mellon\u2019s computer science program) or collaboration with major companies, as well as stats on grads who find high-paying jobs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, be careful <\/span><span data-preserver-spaces=\"true\">about conflating<\/span><span data-preserver-spaces=\"true\"> high-performing, high-demand universities with <\/span><span data-preserver-spaces=\"true\">being<\/span><span data-preserver-spaces=\"true\"> good investments.<\/span><span data-preserver-spaces=\"true\"> A city like Boston, for example, has numerous noted universities, and housing is always in demand. However, the city\u2019s real estate prices make these places bad cash flow buys if you are leveraging.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">For savvy landlords who can offer a well-furnished, curated student experience akin to a quality Airbnb, provided they <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/definitive-guide-tenant-screening\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">screen<\/span><\/a><span data-preserver-spaces=\"true\"> meticulously, there may be an opportunity to capitalize on the malaise facing conventional crowded student accommodation.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The recent third annual <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/real-estate\/articles\/starrezs-2026-state-student-housing-141500427.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">State of the Student Housing Industry Report<\/span><\/a><span data-preserver-spaces=\"true\"> by<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.globenewswire.com\/Tracker?data=DKm25ViGxe93nnp1bHCAcgdKVpmSghNHUiyE-nG9LOFH2_Su0c5hZ0HNCHVknQxRygOgf6djTPQrtxP0ZT32wA==\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> StarRez<\/span><\/a><span data-preserver-spaces=\"true\">, an on- and off-campus student housing software solutions company, highlighted housing-related stress and tenant conflicts affecting mental health as major concerns in standard student accommodation. Jason Day, CEO of StarRez, said in a press release:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cToday, student housing teams are being asked to do more than ever: manage buildings at higher occupancy, support increasingly complex student needs, and make smarter financial and operational decisions, often with limited resources. What this year&#8217;s research makes clear is that the path forward is not simply about adding more capacity. It is about giving housing teams better visibility, more connected data, and the right technology to operate more proactively, reduce administrative burden, and create a stronger residential experience for every student.\u201d<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">For landlords who can offer a<\/span> <span data-preserver-spaces=\"true\">\u201chome away from home\u201d living experience for responsible groups of student friends, they might be able to rent to students who want to guarantee a soft landing for their academic year\u2014and might be willing to pay slightly more for the privilege.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You\u2019re about to get schooled on where to invest\u2014literally. Turns out one of the best places to park your real estate investment dollars is near the halls of higher education. [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":178203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364],"tags":[],"class_list":["post-188983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/188983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=188983"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/188983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/178203"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=188983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=188983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=188983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}