Wednesday, November 5, 2014 / by Jason Schaefer
College and University towns have been out pacing those without in terms of growth at a rate of nearly 32% since 2004. From a sample of 10 cities, such a place like Ithaca, NY, home to Cornell University and Ithaca College, home prices have experienced up to 52% growth since 2004. Boulder Colorado, home to the University of Colorado, home prices have increased 26% in that same time.
While many can thank Universities and Colleges for the increase, students themselves are also feeling the effect post-graduation as first-time home buyers. Bogged down with student loans can have an adverse effect on graduates getting approved for a loan. The part of the market, rentals in University and College towns, along rising student debt remains to be seen how it will shake out in the future.
What this means for Missoula and in particular our student housing market, is that property owners and investors can see the benefits of the University of Montana being located here. While overall enrollment was down in 2014 by 3.9%, there will always be a strong rental market in the University District and surrounding neighborhoods. The University is also breaking ground on the new Missoula College, with the hopes it will be a great asset to attract future students, as well as future and current employers to Missoula. Thus, those considering owning in Missoula near the University of Montana should strongly consider the benefits, whether it be a primary residence or an investment property.
Source: Realtor Mag