Are you considering housing options for your student attending Arizona State University (ASU) in Tempe, Arizona? Instead of paying for expensive campus housing or off-campus rentals, why not explore the option of buying a property that can save you money and even turn a profit when your ASU student graduates?
Why Buy a Home for Your ASU Student?
Purchasing a home for your student can offer significant financial benefits, including:
- Cost Savings: Avoid high dormitory costs and rent hikes in off-campus housing.
- Equity Growth: Build equity in a property that can appreciate over time.
- Credit Building: Add your student as a co-borrower to help them build their credit score.
- Rental Income: Rent out extra rooms to other students, helping cover the mortgage.
Current Tempe Real Estate Market (2025 Update)
As of 2025, the Tempe real estate market remains strong due to high demand from ASU students, faculty, and local professionals. The median home price in Tempe is approximately $470,000, with a steady annual appreciation rate of 4-6%.
- Average Rent for 2-Bedroom Apartment: $1,800/month
- Average Rent for 3-Bedroom House: $2,400/month
- Average Home Appreciation (2023-2024): 5.2%
Types of Homes Near ASU
Tempe offers a wide range of housing options, including single-family homes, condos, and townhomes. Many properties feature the classic Southwestern style with stucco exteriors and tile roofs. Prices range from $250,000 for a starter condo to over $1.5 million for larger, upscale homes.
Popular Tempe Neighborhoods for ASU Students
- Downtown Tempe: Walkable and close to campus.
- University Heights: Affordable and student-friendly.
- Maple-Ash: Historic charm with proximity to local dining and shopping.
Benefits of Owning Instead of Renting for Your ASU Student
- Guaranteed Housing: Your student has stable housing without worrying about rent increases.
- Rental Income Potential: Rent out additional rooms to offset mortgage costs.
- Build Your Student’s Credit: Add them as a co-borrower on the mortgage.
- Control the Environment: Control who lives in the property and maintain a safe space for your student.
How Much Can You Save?
Parents can save thousands by purchasing a property for their student. Here’s a basic comparison:
- ASU Dorm Costs (2024-2025): $10,000 – $15,000/year
- Meal Plan Costs: $4,500/year
- Total for 4 Years: $58,000 (minimum)
- Owning a Home for 4 Years:
- Mortgage: $2,200/month (including taxes and insurance)
- Potential Rental Income: $1,200/month (2 extra rooms)
- Net Monthly Cost: $1,000
- Total for 4 Years: $48,000 (net)
- Potential Sale Profit: $40,000 – $60,000
Building Credit for Your ASU Student
Consider adding your student as a co-borrower to help them establish credit. Many loan programs, including FHA loans, allow parents to co-sign for their students with just 3.5% down.
Managing Your ASU Student Housing Costs
Avoid the hassle of annual dorm moves and storage costs during summer breaks. With your own property, your student can stay put year-round, eliminating the need for costly storage or temporary rentals.
Post-Graduation Options: What to Do After Your ASU Student Graduates
Once your student completes their education, you have several options for the property:
- Sell the Home: Take advantage of potential appreciation and cash out your investment.
- Continue Renting: Use it as a rental property for ongoing income.
- Keep for Family Use: Retain the property as a vacation home or future family residence.
- Consider a 1031 Exchange: Defer capital gains taxes by reinvesting in another investment property.
Tempe Real Estate Outlook for 2025
According to local market data, Tempe continues to be a highly desirable area due to ASU’s ongoing growth and strong local economy. Homes near ASU maintain high demand, making this a solid investment choice.
Ready to Explore Your Options?
Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living for expert guidance.
📞 Call or Text: 602-770-0643 📧 Email: scoomer@kw.com
About the Author
Shirley Coomer
602-770-0643
Licensed Realtor® | Keller Williams Realty
Certified Member of the KW Planner Community
Shirley Coomer is a trusted real estate advisor with over two decades of experience helping clients across Arizona protect their wealth and invest strategically. She specializes in 1031 Exchanges, passive income strategies, and wealth planning for investors and retirees.
