American University’s Washington College of Law is part of the city’s collection of more than 20 colleges in the Washington area, and Washington is starting to attract attention from would-be rental property investors. Photograph courtesy Flickr user NCinDC
According to Move Inc., a company that owns real-estate Web sites such as Realtor.com and Move.com, released a list of ten college cities where real-estate moguls (and aspiring moguls) should consider investing in rental property. Washington ranked fourth on that list, behind Boston, Nashville, and Chicago. Real-estate investors may be interested in these cities because housing demand is high, vacancy rates are low, and rental prices are rising, Market Watch reports. Baltimore was ranked eighth on the list.
The DC area was ranked highly because it is home to more than 20 colleges and rental prices are far outpacing mortgage payments. The average rental rate for a two-bedroom unit was $3,214, Market Watch says. A mortgage for such a unit can be secured for a median-priced unit for around $1,530 a month, meaning that landlords can make a killing on the student market in this city.
And, with the Washington Business Journal reporting as recently as August 10 that housing prices are still on the rise—up 2.7 percent from last year and 15.6 percent from the first quarter of this year—investors who buy for the short period of time their children are in college may be lucky enough to come out on top.
Washington Ranked Fourth in College Town Real-Estate Markets
A real-estate Web site company ranks college cities that are likely good places to invest in rental properties
American University’s Washington College of Law is part of the city’s collection of more than 20 colleges in the Washington area, and Washington is starting to attract attention from would-be rental property investors. Photograph courtesy Flickr user NCinDC
According to Move Inc., a company that owns real-estate Web sites such as Realtor.com and Move.com, released a list of ten college cities where real-estate moguls (and aspiring moguls) should consider investing in rental property. Washington ranked fourth on that list, behind Boston, Nashville, and Chicago. Real-estate investors may be interested in these cities because housing demand is high, vacancy rates are low, and rental prices are rising, Market Watch reports. Baltimore was ranked eighth on the list.
The DC area was ranked highly because it is home to more than 20 colleges and rental prices are far outpacing mortgage payments. The average rental rate for a two-bedroom unit was $3,214, Market Watch says. A mortgage for such a unit can be secured for a median-priced unit for around $1,530 a month, meaning that landlords can make a killing on the student market in this city.
And, with the Washington Business Journal reporting as recently as August 10 that housing prices are still on the rise—up 2.7 percent from last year and 15.6 percent from the first quarter of this year—investors who buy for the short period of time their children are in college may be lucky enough to come out on top.
Subscribe to Washingtonian
Follow Washingtonian on Twitter
More>> Capital Comment Blog | News & Politics | Party Photos
Most Popular in News & Politics
What It Felt Like for a Virginia Marching Band to Win Metallica’s Contest
Meet the 2023 Washingtonians of the Year
What’s IN and OUT in DC Restaurant Trends for 2024
Introducing 8 of DC’s Most Stylish
Washingtonian Magazine
May 2024: Great Getaways
View IssueSubscribe
Follow Us on Social
Follow Us on Social
Related
13 Major Concerts and Music Festivals in the DC Area This Spring
Mary Timony on Her Emotional New Album, “Untame the Tiger”
The Beatles in DC: A New Exhibit in Maryland Looks Back on Early Beatlemania
Northern Virginia High School Wins Metallica’s Marching Band Competition
More from News & Politics
5 of DC’s Most Interesting Ideas for Revitalizing Chinatown
A “Corpse Flower” Is Currently in Bloom at the Botanic Garden
How Emma’s Torch Is Changing the Lives of Its Refugee Workers
Former Fiola GM Convicted of Murder Is Now in a Netflix Docuseries
These 5 DC Traffic Cams Are Issuing the Most Tickets Right Now
Farewell to Crystal City Underground, the DC Area’s Strangest Mall
Washington DC’s 500 Most Influential People of 2024
Inside the Urgent Effort to Preserve Black Newspapers