Sending a child to college in Boston is a major investment. Tuition is only part of the equation.
Once your student moves off campus, your family may spend tens of thousands of dollars over several years on rent — money that provides housing but leaves you with nothing to show for it when graduation arrives.
Some Boston parents are asking a different question:
Instead of paying a landlord for the next four years, why not own the property?
Buying a condo for your college student, sometimes called a “kiddie condo”, can provide your child with a stable place to live while giving your family the opportunity to build equity, benefit from potential appreciation, generate roommate income, and retain a Boston real estate asset after graduation.
Turn a Housing Expense Into an Asset
Whether your child rents or owns, housing is going to cost money.
The difference is what may remain at the end.
With a rental, four years of monthly payments go to a landlord. With ownership, your payments support a property your family owns, while mortgage principal payments can build equity over time.
On average, a condominium purchased in Boston's Fenway neighborhood, one of the most popular areas for many of our universities, has appreciated 16% in the last five years.*
This means if you had bought your student a $500,000 home in 2021, today the value should be approximately $580,000. Equity growth putting almost 2 years of education back in your pocket!
*Source: MLSPIN data
Could Roommates Help Pay the Carrying Costs?
One of the most compelling versions of this strategy involves purchasing a two- or three-bedroom condo.
Your child occupies one bedroom while roommates rent the others.
That rental income may help offset expenses such as the mortgage, taxes, insurance, and condominium fees, allowing a cost parents may already expect to pay for housing to potentially work harder for them.
When the right property and structure come together, roommates can become an important part of the financial equation.
Give Your Student More Than Just a Place to Sleep
There are also benefits that are harder to capture in a spreadsheet.
Owning gives parents greater control over where and how their child lives.
Instead of navigating Boston’s rental market every year, your student can have a consistent home base with:
- A kitchen where they can cook and maintain healthier routines
- More control over roommates and living arrangements
- Privacy and quiet when they need to study or recharge
- A sense of permanence rather than moving between short-term rentals
- The responsibility and independence that can come with treating a home as their own
For a student adjusting to college life, often in a new city, having a stable, comfortable home can offer valuable peace of mind for both the student and their parents.
What About a 529 Plan? The "Landlord Loophole"
Under current IRS rules, room and board can qualify as an eligible 529 expense for students enrolled at least half-time, subject to limits based on the school’s applicable cost-of-attendance allowance. For students living off campus, that generally means qualified room-and-board expenses can be covered up to the amount established by the school for that student’s living arrangement.
One strategy some families explore is having the parent own the condo and act as the landlord while the student formally pays rent for their housing. The student may be able to use 529 funds for qualifying room-and-board expenses, while the parent receives the rent as the property owner.
From the parent’s side, that rental income could then contribute toward the property’s overall carrying costs, such as the mortgage, property taxes, or condominium fees.
Think Beyond Graduation
One of the most attractive aspects of buying is that graduation does not necessarily mean the property has served its purpose.
After college, your family could potentially:
- Sell the condo and realize any accumulated equity
- Keep it as an income-producing rental property
- Allow your graduate to remain while beginning their career in Boston
- Use it for another child attending school in the city
- Retain it as a family residence or pied-à-terre
That flexibility is one reason choosing the right property matters.
A condo near campus is useful. A condo near campus that also has strong transportation access, a functional layout, healthy building finances, and broad appeal to future buyers and renters can be far more valuable.
Looking for a Condo That Works for Student Life?
For families considering this strategy, Destiny Lofts offers Boston condos that can be especially well suited to students and their families. With spacious layouts, convenient access to many of Boston’s colleges and universities, and the flexibility of condo ownership, Destiny Lofts is worth exploring as you consider alternatives to four years of renting. Explore available residences and learn more at www.destinylofts.com
The Charles Realty has been helping clients navigate Boston real estate since 1984. We can help your family identify properties that provide your student with a comfortable place to live today while keeping rental potential, resale value, and long-term ownership in mind.
Considering buying a condo for your college student in Boston? Contact The Charles Realty to explore your options.
Social Links Footer