Phoenix, as we all know to be a very unique market, has seen continual growth and increases in rental rates and property values, albeit minor increments, over the last few years. Foreclosures still plague the state and by extension the overall comfort with Phoenix as an investment market remains to be skeptical, but special considerations make a strong case for the Valley of the Sun. Considering the overwhelming population of college students attending any one of the ASU campuses (70,000 student enrollment), Grand Canyon University (40,000 student enrollment), any of the Maricopa Community Colleges (260,000 student enrollment), along with many other educational institutions, Phoenix remains an educational stronghold, where an often overlooked market segment makes up a sizable proportion of renters in Maricopa County.
Many young graduates do not have the money or sufficient credit to purchase a home right out of college. With ballooning inflation and subsidization from the federal government practically inundating students in unrealistic debt amounts through their twenties, these young adults will look to put off ownership for potentially many years to come. So these new graduates turn to renting, the only other viable option besides relocating home with their families.
The main thing for rental property owners and property management companies to know is that with each year that passes, a new influx of renters are hitting the market. Regions of the metro area in close proximity to educational institutions will fare better than areas who might not be as close to universities or other strong commercial zones. This means that the rental market will always be a strong industry and for those looking to purchase rental properties as investments, you will have the peace of mind of knowing that renters will never go away, especially young renters who are beginning their careers.
Thank you for sharing such a solid supply-demand analysis of rental properties near educational institutions. During periods of recession a larger influx of people tend to go back to school. So this gives another reason why rental properties near colleges would always be in demand.
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