Rising rents in college towns like Philly could make it a good time to buy
College is a time when many young adults make their first foray into the world of living alone and enter a new phase in their life. For many parents, however, this process is a little more gradual. Many help their children adapt to their new, freer life by helping them land a suitable living space. However, with rents climbing around the country, this has become a costly endeavor for many. In fact, in popular college towns like the City of Brotherly Love, rents have become so high that some parents might want to consider investing in one of the homes for sale in Philadelphia, PA, instead of forking over a hefty sum each month for an apartment.
Cities with universities experience a yearly rush of new, young residents each September, which can often lead to a spike in local rents. The high demand for apartments near campus typically leads to higher prices, but in 2012 stricter mortgage standards and rising home prices have exacerbated this trend. Many college towns, especially those with large or prestigious universities, like Philadelphia, have seen rents reach new heights.
According to Forbes, the average rent for all bedrooms in the city has reached $1,475. This high price tag may give some parents of college students in the area a reason to consider buying one of the houses for sale in Philadelphia, PA. This way, their money can go toward an investment instead of just into a landlord's bank account.
This option might be particularly appealing because home prices in the region have risen nearly as rapidly. In fact, with a median list price of $234,900, homes here are relatively inexpensive enough to make buying one a reasonable proposition. According to the news source, a purchase could result in an estimated mortgage payment of $870 - almost $600 less than a typical room's rent.
Additionally, with historically low interest rates and increasing consumer optimism, this could be an ideal time to buy a home. It does not always make sense for parents to purchase a home when their child attends college, but this unique mix of skyrocketing rents and favorable buying conditions in the City of Brotherly Love may make it a sensible decision at this point. Checking out real estate in Philadelphia, PA, to see if there is a house for your college-age child could end up being a sound investment.