It cost an average of between $10,138 to $11,516 to live in campus housing during the 2015-2016 school year, according to the College Board website. At the same time, the median price of an existing residence reached a high of $247,700 in June, and new homes have sold for a median $306,700 – and prices are only getting higher, according to Realtor.com’s Clare Trapasso.
This has led some college-student families to the option of purchasing a home for the student to live in. According to U.S. News and World Report, this can be a sensible and profitable option if the student plans to live in the home after they’ve graduated, if they pay rent back to their parents, or if the family plans to rent out the property after the student has left.
Just owning the home for four to six years is not at all a guarantee of making a profit or breaking even, though, especially if another recession occurs. There’s also the question of what to do with the property if the student drops out or transfers, or if they can’t handle the responsibility of maintaining the home, according to Trapasso.