Best Cities to Buy Student Rental Property in the USA 2024

Prospective buyers planning to venture into the US student accommodation market might be unsure about which top regions to consider for investment. This listicle guide highlights the five best cities to buy student rental property in the USA. This blog will highlight the biggest regions to invest in student properties by understanding each city's primary selling factors and key market statistics.

What are the Best Cities to Buy Student Rental Property in the USA?

Prospective buyers should prioritize university towns based on three important factors. The presence of prestigious universities attracts students globally, as does the city's interconnectivity and strong demand for rental properties. Taken together, these factors attract high-income earners, which increases rents and provides stability regardless of general economic trends.

That said, here are the best five cities to buy student rental property in the USA.

#1 Austin, Texas

Austin is a multicultural metropolis with 6,000+ international students pursuing higher education at the University of Texas (Texas Global). This city prioritizes environmental sustainability, which improves the quality of life for its residents. As the fastest-growing city in the USA and a primary center for tech and innovation, Austin attracts students from every corner of the world. It is one of the best cities to buy student rental property in the USA.

• Student population: Over 422,000
• Universities in the city: Concordia University Texas, The University of Texas at Austin
• Average property price: $546,619 (Zillow)
• Average gross rental yield: 6.82% for properties in the city center and 10.71% for properties outside the city center (Numbeo)

#2 Gainesville, Florida

Demand for rental units in Gainesville is continually driven by the large number of students attending the University of Florida. Due to this demand, investors in this area have an opportunity to get high returns and more rental profits. In addition, Gainesville's vibrant climate promotes diversity in the city and improves the overall quality of life for its residents.

• Student population: Over 790,000
• Universities in the city: University of Florida, Florida Gateway College
• Average property price: $297,461 (Zillow)
• Average gross rental yield: 14.55% for properties in the city center and 11.29% for properties outside the city center (Numbeo)

#3 Athens, Georgia

A charming city, Athens is home to a sprawling University of Georgia campus that attracts a sizeable number of students from every part of the world. Given this demographic, there is a continued need for affordable rental properties in the communities around the university, making it a top city to buy student rental property. Real estate unit sales were up 30% on the previous year, and several properties sold for more than their asking prices, indicating a competitive housing market with room for growth (Home Trends Report: Athens Housing Market Update: Hankbailey Remax).

• Student population: Over 40,000
• Universities in the city: University of Georgia, Georgia State University
• Average property price: $319,928 (Zillow)
• Average gross rental yield: 13.99% for properties in the city center and 11.90% for properties outside the city center (Numbeo)

#4 Ithaca, New York

Ithaca is small in size, but it has everything: beautiful surroundings, Cornell University, and Ithaca College. The competitive rental housing market is fueled by the student population, especially in neighborhoods near the universities. Prospective investors can consider Ithaca one of the best cities to buy student rental property in the USA, considering the rising need for quality student housing in the area.

• Student population: Over 28,000
• Universities in the city: Cornell University, Ithaca College
• Average property price: $444,000 (Zillow)
• Average gross rental yield: 16.37% for properties in the city center and 11.45% for properties outside the city center (Numbeo)

#5 Ann Arbor, Michigan

Ann Arbor is home to a sizable student population, a thriving arts scene, and diverse cultural resources. Student rentals are strong in a booming rental market thanks to the University of Michigan's respected reputation, which also attracts staff and students. Additionally, Ann Arbor's vibrant environment supports a diverse community and generally enhances the quality of life for residents. All in all, the aforementioned factors make this city one of the best cities to buy student rental property in the USA.

• Student population: Over 50,000
• University in the city: University of Michigan, Franklin University
• Average property price: $467, 682 (Zillow)
• Average gross rental yield: 11.08% for properties in the city center and 10.64% for properties outside the city center (Numbeo)

USA Student Rental Market: Robust Growth in 2024

Navigating the dynamic student rental market in the USA can be a challenging task for property operators. However, armed with insights into the best cities to buy student rental property in the USA, property operators can chart a successful strategy for high returns in the student housing market. From the multicultural charm of Austin to the quaint allure of Athens, each city offers unique opportunities fueled by prestigious universities, robust rental markets, and a promising economic landscape.

As the pursuit of knowledge continues to flourish, these cities represent beacons of opportunity for those looking to take advantage of the booming student accommodation sector. Those looking forward to making the most out of these five cities can list their property with amber and ensure lasting prosperity.

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