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Financial Benefits of Buying a Home for Your College Student

October 7, 2025

As the cost of higher education continues to rise, many families are looking for smart ways to manage expenses, and one of the most overlooked opportunities lies in housing. Instead of paying for dorms or signing apartment leases year after year, more parents are choosing to purchase a home for their college student. Not only does this decision ease the financial strain during school, but it can also set your family up for long-term financial benefits. 

If your student is heading to college around Ann Arbor, buying a home could be a smart move, and our team at Norfolk Homes offers nearby communities like Bristol Ridge Townhomes and Wellesley Woods, designed with both comfort and value in mind. 

Save on Dorm Costs

Dorm living often comes with high price tags, and it doesn’t stop at the monthly room costs. Many universities require bundled meal plans, fees for amenities and shared living spaces that don’t always match your student’s needs. Buying a home allows you to bypass these extra expenses, and instead of paying for temporary housing with no return, you’re putting money into an asset that belongs to your family. 

Create an Income Opportunity After Graduation

One of the greatest advantages of buying a home in a college town is the option to hold onto it after your child graduates. College housing is always in demand, and renting to other students can provide a steady income stream. Whether you choose to manage the property yourself or partner with a management company, your investment can continue working for long after your student walks across the stage. 

Build Long-Term Equity and Value

Real estate in college towns has historically proven to be a strong investment. As demand for student housing grows year after year, property values often remain stable, or even rise. In fact, a recent Business Insider article highlighted several parents who purchased a home for their college student and later sold them for a profit, in some cases earning hundreds of thousands of dollars in return. Even if you simply break even, that’s often a better outcome than spending thousands of dollars on dorms or rent with nothing to show for it. 

Why Consider Ann Arbor?

Ann Arbor isn’t just home to the University of Michigan, it’s also a vibrant community with a strong housing market and plenty of opportunities for students and families alike. We have two communities that are especially attractive for families exploring this option:

• Bristol Ridge Townhomes: Offering low-maintenance living and a prime location, Bristol Ridge is a smart choice for busy students who want comfort and convenience. Plus, townhomes are often easier to maintain while still providing the privacy and space that dorms can’t match. 
• Wellesley Woods: Located just minutes from Ann Arbor, Wellesley Woods offers both paired ranch and single-unit homes in a quiet scenic setting, making it an excellent option for families who want more space and the long-term potential of a traditional home. 

Both communities provide the quality, value and craftsmanship that our team at Norfolk Homes is known for, making them excellent candidates for a purchase that balances your student’s immediate housing needs with your family’s financial goals. 

A Smart Move for Today and Tomorrow

Buying a home for your college student isn’t just about avoiding dorm life, it’s about making a strategic investment. From saving on room and board to creating rental income and building equity, the financial benefits can last well beyond graduation day. 

If you’re exploring housing options in Ann Arbor, our team at Norfolk Homes is here to help you find the right fit. With communities designed for both comfort and long-term value, we can help you take the next step toward a decision that benefits your student and your family’s financial future. If you’re interested in learning more, give us a call at (734) 336-1912 or fill out our online form today.