An increasing number of parents are helping their child's college moving process by buying a home for them to live in while at school.
A report from Coldwell Banker
Real estate found that college towns have become an emerging market for real estate investors because of the steady stream of demand. While some of those investors are just looking to turn a profit, others are also looking at those homes as an investment for their children.
"Roommates provide rental income for the mortgage, and the hope is that students care for the home and it appreciates over time," said Jim Gillespie, CEO of Coldwell Banker Real Estate.
However, the place where students go to school plays a significant role on how much parents will have to pay. The average home listing in Muncie, Indiana - home of Ball State University - was just over $105,000 this year, while homes near Stanford University in Palo Alto, California averaged well over $1.3 million.
The investment could help parents save a significant amount of money. According to the National Center for Education Statistics, the average cost for room and board at a private four-year school in 2008 was more than $8,800 per year.