Real estate agents said more parents are opting to buy their children a home in college towns rather than pay rent for an apartment or dormitory fees, according to a survey from Coldwell Banker Real Estate.
Of the 425 real estate professionals questioned in markets home to major colleges or universities, 64% said they saw a significant number of "parent investors" buying homes for their college-age children.
College towns have maintained some activity despite the downturn in the economy. Nearly two-thirds of the real estate agents said a significant number of investors are buying homes near campus and renting them out.
"Long-term investors take advantage of the steady stream of renters, including students, professors and university officials," Coldwell CEO Jim Gillespie said. "Parent investors buy homes for their child to live in while attending college. Roommates provide rental income for the mortgage, and the hope is that students care for the home and it appreciates over time.