What makes one location better for a rental property than another?

  • Closeness to a major employer
  • Easy access to a commercial area
  • Beautiful area
  • A neighboring college.

When it comes to rentals, being close to a college is one of the best investments. It’s not just the regular students to consider but also the graduate students, lecturers, college staff, and professors.

It’s a fact: property in well-known college towns usually sell better than its neighbors. Not only is the rental market stronger, but so is retail and hospitality, to serve the many students, staff and instructors.

And then there’s the culture that comes along with being near a college: plays, lectures, concerts, arts and all the ideas and energy surrounding a college.

Berkeley, CA
The East Bay region of the San Francisco Bay Area has definitely felt the real estate downturn, but in Berkeley, far less so though than neighboring cities. The main reason is that Berkeley is home to the University of California at Berkeley.

This chart shows you the median price-per-square foot of homes sold in Berkeley in the last two years, as compared to those sold in the East Bay as a whole.

Not only leading the pack, Berkeley has doubled the median of the region as a whole.
Next, look at sale distribution data for the entire East Bay.

Berkeley proper follows, and again, the difference is amazing:

See all available homes for sale in Berkeley, CA

So, When thinking about buying a home, whether as a primary residence or as secondary property, one meant to generate rental income, being near a large university might be the way to go.

I’ve helped many clients purchase property for their students going to UC Berkeley and am very familiar with the areas, homes, and rental values. If you’re considering purchasing a home near the University I can help you finding the area that’s right for you, your student or your best investment value. I can also point to lenders who can help you with a “second home” purchase that will be more beneficial to your bottom line.