Dorms vs Condo- Moms and Dads Decide
One of the most interesting things about real estate (to me at least) is when I notice trends in buying. For example, there was a time when it seemed everyone I was working with was a young couple, just starting out and looking to buy their first place- most were slightly nervous but excited and enthusiastic about the process. I’ve heard the same jokes over and over- wife/girlfriend looks at the huge walk in closet in the master bedroom and says “Wow honey- where are you gonna put YOUR clothes?”. You get the idea. Good times!
But there seems to be a new trend emerging- due in large part, I believe, to our very flexible buyers’ market and the enormous rising costs of college tuition and housing. I Googled “tuition increases college 2008” and there were dozens of articles from college campuses all over the country about the increases in costs- including on-campus housing. So right around Spring I started noticing something: a huge number of moms and dads asking me about condos near
Not that this is the first time this has ever happened- and there are still people who will rent instead of going the dorm or buying a condo route- for example, DePaul University’s campus has a thriving rental market surrounding the school, but condos in that area are starting to become a more attractive option for parents too.
Why is this becoming so popular? A few reasons that I hear from parents over and over are:
“It’s a buyers’ market!!”
Man, people love saying that. J It’s true, though- while Chicago hasn’t experienced the plummeting home values that other cities have, the general consensus is that sellers are flexible, and buyers are more knowledgeable and prepared these days- and savvy, too.
“We will use it as an in-town when they graduate/ I’m retiring soon.”
What’s fun about this is showing a condo to parents and their college freshman son or daughter and watching everyone’s different reactions. The student is often excited about the proximity to the school, their friends, and well, just being there and perhaps on their own for the first time—and in the case of parents looking at a condo in the South Loop near Columbia and Roosevelt Universities’ campuses- mom and dad were eyeballing the museums, our beautiful lake front, Millennium Park… and being excited for those reasons.
“We don’t want to throw money away on dorms.”
It’s true- you can’t exactly sell your dorm room in 4 years and make money on it. Parents are seeing the booming condo market in Chicago as an opportunity to not only save money each month (a 1 bedroom or studio condo will often cost less per month than a dorm room, depending on the school) but to make a smart investment at a time when prices are reasonable- and reap the benefits of appreciation (and an in-town weekend getaway) when “college kid” finally becomes “college graduate”.
“We want Joey/Jane to learn from this.”
This is my personal favorite—probably because I used to be a teacher so I’m all about it. Parents are actually using the entire buying experience as a learning tool for their kids- even younger siblings who are a ways out from ever buying a condo (or driving a car for that matter). I had an experience recently where the grad student daughter was heavily involved in ALL aspects of the purchase- from selecting listings for us to see, working with me as we negotiated, making decisions about contract terms, and including being on the title. I think it’s fantastic that her parents really used the process to help make their daughter a ‘veteran’ buyer. And when she’s ready to sell or buy again- she’ll be an “old pro”.
Hope you enjoyed reading this! If you have any questions about
Cheers-
Terri
Posted at 01:42PM Aug 14, 2008 by Terri Boyce in General Comments[1]
Posted by Cliff on August 17, 2008 at 07:04 PM CDT #