Living in a college town might not be top of mind when thinking about a place to raise a family or find your retirement home. But towns anchored around a college or university can have a great deal to offer residents – and investors – of any age.
College towns generally have a number of attributes that can appeal to a range of demographics. They may have a relatively low cost of living. As U.S. News & World Report noted, they are often designed to serve residents with little in the way of income – students (1). Rents, restaurants, shops and other services often cater to people on a budget.
From a cultural standpoint, the presence of a major university can prompt musicians, theater companies, and speakers to schedule a stop in a tour otherwise usually limited to large cities. And universities themselves will often open student concerts and performances to the public. If you are a sports fan, opportunities to cheer on the local team are year-round in many towns, with football weekends the highlight of many fall seasons.
For locals interested in lifelong learning opportunities, many universities offer free or discounted classes to local residents, with some offering bespoke senior programming through chapters of the Osher Lifelong Learning Institute (OLLI). OLLI currently has a presence on 125 campuses across the country (2).
For retirees, access to high-quality medical services typically is a factor in determining where to live. Towns that are home to a major medical school and teaching hospital can provide peace of mind to seniors concerned about having access to medical facilities and specialists.
From an economic standpoint, college towns were long considered to be shielded from recessions (3). The pandemic, though, proved costly to many towns as students were sent home and businesses shuttered. For example, the city of South Bend, IN, home to the University of Notre Dame, lost about $17 million in revenue just from the cancellation of Notre Dame’s 2020 commencement weekend (4).
But many of these towns recovered quickly as students and visitors returned to restaurants and hotels, and on campus activities – including sports – returned. An official in Ann Arbor, MI, noted that the town benefited from eight University of Michigan home football games in 2022, each of which generated about $10 million in economic activity (5).
When evaluating multifamily housing opportunities, location is one of the first things the CrowdStreet team considers. And a location that’s home to a vibrant college or university will typically be a positive factor in our decision to list on the CrowdStreet platform.
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