Buying a Second Home for Your College Student in the Greater Sacramento Area: Smart Move or Missed Opportunity?

As families face rising rent prices and limited student housing options around campuses like Sacramento State, UC Davis, and Sierra College, many are asking a bold question:

Should we buy a home instead of rent one for our college student?

In a high-demand, growth-oriented region like Greater Sacramento, the answer might surprise you—and your bank account.

🎓 Why This Makes Sense in Sacramento

1. Rental Demand is High—and Still Rising
In college-adjacent neighborhoods like East Sacramento (near Sac State), Davis (near UC Davis), and Rocklin (near Sierra College), rental demand remains strong. Students, faculty, and staff keep the market moving year-round, and vacancy rates are low.

2. Housing Shortages = Investment Opportunity
Davis is notorious for its tight rental market, and even Sac State students often struggle to find quality, affordable housing. Buying in these areas offers the chance to provide stable housing for your student and generate income from roommates.

3. Strong Appreciation & Equity Growth
Real estate in the Greater Sacramento area continues to appreciate steadily—especially in centrally located, campus-adjacent areas. A home bought today could be worth significantly more by the time your student graduates.

💰 Added Benefits of Buying in a College Market

✔ Offset Your Mortgage with Roommates
Let your student live rent-free while collecting rent from others. Many parents find roommates’ contributions cover most (if not all) of the mortgage.

✔ Build Long-Term Wealth
You’re not just paying for college—you’re investing in real estate. When your student graduates, you can keep the home as a rental or sell it at a profit.

✔ Tax Write-Offs & Incentives
In many cases, mortgage interest, property taxes, and certain expenses may be tax-deductible. Talk to a CPA familiar with investment properties in California.

🔍 Where Should You Look?

• East Sacramento & College Glen – Walkable to Sac State, family-friendly, and full of charm.

• Davis – Always in demand but limited in supply. Consider condos or townhomes for easier maintenance.

• Rocklin & Roseville – Popular with Sierra College students, with strong appreciation and community infrastructure.

• Midtown Sacramento – A great option for students seeking independence and urban living—plus long-term rental appeal post-graduation.

🧠 Before You Buy, Consider This:

• Who manages the property? Is your student responsible or will you hire a manager?

• Summer vacancy plan: Will you rent it out short-term or keep it in the family?

• Exit strategy: Will you sell it after graduation or hold it as a rental?

🏡 Final Thoughts

In the Greater Sacramento area, buying a second home for your college student isn’t just practical—it could be profitable. With competitive rental markets, a growing population, and stable real estate trends, the timing couldn’t be better.

Whether you're looking to cut housing costs, generate passive income, or start building long-term wealth, investing in student housing could be the strategic move you’ve been waiting for.

Ready to talk about adding an investment property to your portfolio? Let’s talk!
📞 Scott Ostrode – 916-799-1662
📧 Scott@TeamOstrode.com

We're here to help you explore your options and make confident, informed decisions in today’s market.