Two Pa. cities make top 10 in best college towns to invest

For at least two college towns in Pennsylvania, investing in a home is a bargain compared to renting for students.

Realtor.com® recently released a list of the top 10 college investment towns. Philadelphia, for the University of Pennsylvania, and Swarthmore, for Swarthmore College, landed in fifth and eighth, respectively.  The report analyzed the average monthly homeownership costs, such as mortgage, property taxes and insurance, and compared it with the average monthly rent in areas near the campus.

Near the University of Pennsylvania’s campus, the average monthly homeownership cost is $964, while the average rent payment is $1,252. The report noted that the average three-bedroom, two-bathroom home near the university is $167,950, more than $90,000 less than the national median of $260,000. Considering the average rent is nearly $300 more than the average monthly homeowner costs, purchasing a home for a student at the university could be quite beneficial. Neighborhoods Point Breeze and Passyunk are popular neighborhoods for undergraduate students, thanks to their closeness to campus and other necessities, the report stated.

And less than 20 miles away in Swarthmore, it is more beneficial to buy over renting as well. The average homeownership costs come in at $1,128 a month, compared to the monthly average rent of $1,252. Just like homes near the University of Pennsylvania’s campus, houses near Swarthmore average $189,125, still significantly below the national average. The report recommended looking at homes downtown, or nearby in Media.

The top three best college towns to invest were John Hopkins University in Baltimore, where the average monthly rent is $1,443, compared to the average monthly homeownership cost of $775, followed by the University of Notre Dame in South Bend, where the average monthly rent is $856, compared to the average monthly homeownership cost of $470. Rounding out the top three is Purdue University in West Layfayette, where the monthly rent is $970, compared to the monthly homeownership cost of $666.