The Burrow
Apr 28, 2025
Student accommodation has always been a lucrative investment opportunity – after all, it’s always in demand, and you’ll have guaranteed tenants for at least nine months of the year.
However, not all cities are as lucrative as others; with rental yields, property prices, and student population sizes all major factors that come into play.
As experts in comparing home loans, including investment loans, we decided to uncover the best cities across the US, Australia and Europe, that offer the best returns when it comes to investing in student accommodation. From rental yield and student population, through to search demand and more, read on to uncover where’s best to invest.
The results are in for the US, so it’s time to find out where the best buy-to-let opportunities are…
With the highest monthly search volumes for student property in the US, at 8,700, and the second highest student population, at 114,391; Atlanta is officially the best city for investing in student property.
If you want to rent out a student property, then look to the areas close by to Georgia State and Georgia Tech Universities – Home Park, Edgewood, and downtown Decatur, which is just outside of Atlanta, are all great options. And, with the fifth highest rental yields in the US, at 13.71%, you could make a decent return.
In second place is Chicago, due to rental yields of 13.97% – the third highest in the US. The city’s home to 28 universities, including the University of Chicago, the Illinois Institute of Technology, and Northwestern.
If you’re looking to invest in student accommodation, then look at places in Pilsen, which also boasts a great nightlife and arts scene – Rogers Park, and even the Loop, although it’s one of the more expensive suburbs to buy into.
With a rental yield of 11.72%, a student population of 77,584, and one-bedroom rental prices of USD$1,554.50 a month, Philadelphia is the third best place if you’re looking to invest in student accommodation.
Look for properties around University City, Brewerytown, Spring Garden, and Fishtown – all of which are easily commutable to the major universities, and are ideal for high-yield student property investments.
In fourth place for student accommodation investors is Phoenix, with a relatively high rental yield at 9.03%, alongside the highest student population of 145,655, and average rental prices of USD$1,500.50 for a one-bedroom.
Home to Arizona State University and Grand Canyon University, amongst others; look to invest in properties that are in Tempe, which is particularly popular with students due to its proximity to ASU, and its nightlife; or Encanto Village, where prices are more affordable in general.
Rounding off our top five student investment cities in the US is Texas, with the third lowest price per square foot at USD$216.40, and the fourth highest rental yields of 13.83%.
For properties to buy, look at Montrose, which students love for its art and coffee scene, Downtown, with easy access to the University of Houston; and Rice Village, which has a slightly slower pace of life – perfect for mature students.
However, there are lots of other great cities to invest in, too. St. Louis, Missouri, comes in sixth place, yet has the highest rental yields (17.56%), and the lowest price per square foot of property (USD$148.64). Pittsburgh, which is ninth overall, has the second highest rental yields and second lowest price per square foot, whereas when it comes to student populations, LA scores highly, at 97,366.
Finally, when it comes to the cost of one-bedroom rental prices, you can charge the most in New York (USD$3,388.53), San Francisco (USD$3,033.20), and Boston (USD$2,908.85).
Moving over to Australia, it’s time to uncover the top student rental markets for 2025, here.
With the highest rental yields (6.01%), second cheapest price per square foot (AUD$633.97), and fourth largest student population (114,670), Perth is officially the best city for investing in student accommodation.
Home to five universities, including the University of Perth, look at properties in Crawley, Claremont, and Northbridge – all of which are in close proximity to the universities and the city centre.
In second place is Melbourne, with the most monthly searches for student property, at 36,300; as well as the largest student population (232,065), and the sixth highest rental yields (4.54%).
If you’re considering investing in student property, have a look around Carlton, which is close to the University of Melbourne and RMIT, or Parkville, which is equally popular amongst local and international students.
Brisbane is another great option for investing in student accommodation, with the second highest monthly search volumes for student property (16,200), the third largest student population (153,654), and the fourth highest rents for a one-bed property (AUD$2,119.98).
Student-friendly areas to look at property in include Alderley, with its peaceful atmosphere and well-connected transport links, Wilston, with its great café scene, and Paddington, with its lively nightlife.
With the third highest monthly searches for student accommodation (8,700), and the fifth largest student population (91,078), Adelaide is the fourth best university city for property investment, in Australia.
Home to the University of Adelaide, Flinders, and the University of South Australia, there are lots of great areas to potentially invest in. We’d recommend looking at properties in the CBD, Norwood, and North Adelaide – all of which are popular with students.
Rounding off our top five investment options is Sydney, with the highest rental rates, at AUD$2,832.72: not to mention the second largest student population at 182,674, and the fourth highest monthly searches for student property, at 8,200.
Home to six major universities; student-friendly areas to consider investing in include the CBD, with its proximity to bars, restaurants and attractions; Darlinghurst, with its (relatively) affordable housing options and vibrant nightlife, and Newtown.
Of course, that’s not the only place to invest in student property – if budget is your main focus, then consider Wollongong and Hobart, which have the cheapest and third cheapest prices per square foot, at AUD$543.06, and AUD$712.66, respectively.
Finally, we looked at the same metrics for Europe, to see which university cities are best to invest in.
With the third highest rental yields (5%), student population (140,368), and third lowest price per square foot (EUR€444.24), Barcelona is the best European city to invest in, for student accommodation.
Home to eight universities in total, look in the areas of Gracia, with its independent galleries and shops, and well-connected public transport, and Eixample, with its thriving café, museum, and library scene.
With the largest student population in Europe, at 153,714; Madrid comes in second place; and has a rental yield of 4.78%, and average rents of EUR€1,161.86 for a one-bedroom home.
Moncloa-Aravaca is a great option to look at, given its proximity to Ciudad Universitaria, and its lively nightlife; but Malasana and La Latina are great options too, the former with its vintage shops and independent bars, and the latter with its tapas bars.
In third place for student accommodation investment in Europe is Brussels, with the second lowest cost per square foot of property, at EUR€392.90, and the second highest rental yields of 5.22%.
Home to the Free University of Brussels and the University College of Brussels, the city centre is popular amongst students, so is one ideal place to look for investing in property. Alternatively, look around the districts of Cimetière d’Ixelles and Dansaert.
With the fourth biggest student population (124,613), rental yields of 4.25%, and one-bedroom rental prices of EUR€1,175.91, Milan comes in fourth place.
This chic city is home to 14 universities, offering 210 programmes, meaning there are lots of different areas that are popular amongst students. Navigli and Porta Genova are two of them, due to their proximity to Bocconi and IULM; alongside Citta Studi and Bicocca, both of which offer affordable housing options.
Finally, Lyon makes up our top five student investment cities in Europe, with the second biggest student population (147,171), and 2,140 monthly searches for student accommodation. France’s third largest city is home to 10 universities, including École Normale Supérieure de Lyon and Jean Moulin University.
If you’re considering investing in student accommodation here, then look in the suburbs of Guillotière, Part-Dieu, and Vieux Lyon – all of which are close to campuses, and have a great atmosphere.
Of course, these aren’t the only cities in Europe to consider investing in, in student accommodation. For example, whilst Dublin scores 7th overall, it has the highest rental yields, at 6.7%; whereas Athens, who comes in 8th, has the cheapest price per square foot, at EUR€282.43.
If you want to invest somewhere that has high rental prices, consider Zurich (EUR€2,140.43), Geneva (EUR€1,907.64), and Dublin (EUR€1,863.65); or if you’re looking for demand, then Berlin has the most monthly searches for student housing, at 36,300, followed by Dublin and Amsterdam, at 20,700 and 19,800 respectively.
Compare the Market’s General Manager of Money, Stephen Zeller, said its important for prospective investors to do their research when looking for somewhere to buy.
“If you’re buying a property to rent out to students, you will want to look at properties with good rental yield close to universities, but also consider other factors such as local transport options, nightlife and purchase cost,” Mr Zeller said.
“The higher the cost, the more you might need to borrow in a mortgage, and this can impact your potential yield. A busy, bustling university city like the ones listed above is a great potential location due to a strong demand for accommodation.”
Sources:
Broad student accommodation searches:
Private-specific searches (relevant for buy-to-let):
To determine the best university cities for buy-to-let investors, we developed a comprehensive weighted ranking that evaluates key factors influencing the student property market’s investment potential. Each factor was carefully weighted to reflect its impact on rental profitability, demand, and accessibility.
These rankings were:
Disclaimer:
While every effort has been made to source reliable data and ensure accuracy, this campaign is intended for informational and comparative purposes only. The findings should not be considered financial or investment advice. Compare the Market does not guarantee the completeness or accuracy of the data and cannot be held responsible for any losses, damages, or financial decisions made based on this analysis. Investors should conduct their own due diligence and seek professional advice before making any investment decisions.