Additional Information

Average Property Value and Median Rental Price

The average value of property for each university area is calculated by adding up all the values of properties in the university's zip code area and dividing them by the total number of properties in the area. For example, if the total value of 10 properties in an area is $1,000,000 then the average value of property in that area would be $100,000. On the other hand, the median rental price reflects the midpoint of rental prices that are either above or below the value provided. For example, if rental prices for 3 properties in an area are $1,000, $900, and $1,500 then $1,000 would be the median rental price since the other rental prices are either above or below this number. Values that are medians represent measurements that are more statistically sound than averages since they centralize what other values lean towards. Most significantly, median values are less likely to be impacted by deviant values.

How Many Students Live Off Campus?

The number of students who do not go with the housing options of their college or university is a key factor for those who are interested in purchasing real estate with the intent of renting the property out to students. The greater the number of students living off campus is, the more potential the acquisition of a property within the area has of being rented out to students.

Types of Housing Markets

Locals living within the zip code of each university either own their homes (homeowners), or rent their homes (renters). Typically, the decision to own a home or rent a home is determined by a number of factors. Homeowners may have purchased their homes because they are financially better off in an area compared to renting. They might also be less inclined to move around as much as those who live in a more urban environment. Renters might rent a property because of the flexibility provided as well as less responsibility to maintain a property. In terms of real estate, deciding to purchase between one market over the other can be determined based on the goals of a project. For example, if one is planning to flip and renovate a property, it might make more sense to purchase property in a housing market that has more homeowners. Likewise, if the goal is simply to collect rent, a housing market with more renters would better suit such a setup.

Public Versus Private Universities

How funding operates is the biggest difference between public and private colleges and universities. A majority of public colleges and universities were established by state governments to provide residents with the opportunity to attain public education. As a result, the cost of attending public institutions are subsidized which results in lower tuitions. Private colleges and universities do not receive state legislated funding, and therefore depend on tuition costs and private contributions such as donations.