The Parcoursup results each year mark the start of a real race for student housing. In large university towns, studios sometimes disappear in a few dayss, which forces parents to make a decision quickly. Should we agree to pay rent for several years or invest directly in an apartment that the child will occupy during their studies? With the gradual decline in credit rates and rents which now exceed 500 to 700 euros per month in many university towns, purchasing is regaining interest. Especially since, in certain municipalities where the price per square meter remains reasonable, the monthly payment of a loan can now approach the cost of a rental.
However, the equation is far from being as simple as a comparison between rent and a monthly loan payment. Many elements can indeed turn a good idea into a bad investment or vice versa. “People don’t necessarily want to pay sunk rent for their child. If it’s 500 euros per month for five years, they say it might be worth buying”notes Sandrine Allonier, spokesperson for Vousfinancer. But, she immediately warns, “the calculations must be done” before getting started.
Buying or renting student accommodation: what is the real calculation to make?
The first instinct is often to compare the amount of rent with that of a monthly loan payment. If the repayment of the loan is identical, or even lower, than the rent requested for a studio, the purchase seems naturally necessary. However, this reasoning is incomplete. By becoming an owner, parents are not just paying a loan. “We must take into account the property taxnotary fees, co-ownership feesTHE multi-year work plan… Ultimately, all these costs can be quite expensive”recalls Sandrine Allonier.
Another point often forgotten: housing assistance. Depending on the student’s income and family situation, APL can significantly reduce the real cost of a rental. “It’s a calculation that parents often forget”underlines the expert.
Finally, buying also involves planning over several years. Resell a property only two years after its acquisition rarely leaves time to amortize the costs incurred. “If you buy a property for 150,000 euros and sell it two years later, they will probably not have taken the 15,000 euros you paid in notary fees. Instead, we need to plan ahead for at least five years.”insists Sandrine Allonier.
The other essential variable obviously remains the chosen city. Between a Parisian studio at nearly 9,500 euros per square meter and an apartment in Saint-Étienne, where prices are around 1,300 euros per square meterthe profitability is nothing comparable. It is this relationship between purchase price and rent level which very often determines whether the investment is really relevant or whether it is better to remain a tenant.
In which cities is buying a student studio more profitable than renting?
Not all university towns are equal when it comes to investing in housing for your child. The determining criterion remains the relationship between the purchase price of housing And the level of rents. The lower the price per square meter in relation to the asking rent, the more attractive the purchase becomes.
This is particularly the case for cities like Saint-Étiennewhere an apartment can be bought around 1,300 euros per square meterwhile the rent for a studio reaches almost 24 euros per square meter. Same observation at Grenoblewhere prices are around 2,500 euros per square meter for rents which remain high, around 25 euros per square meter. In these cities, repaying a loan can represent an expense close to, or sometimes even lower than, that of renting, especially when the parents have a substantial personal contribution.
Conversely, in large metropolises, the acquisition cost weighs much more heavily in the calculation. HAS Pariswhere the average price exceeds 9,500 euros per square meteryou have to pay almost four times more than in Saint-Étienne to buy a studio. Lyon (approximately 4,500 €/m²) And Bordeaux (€4,400/m²) also display high price levels, which significantly reduce the profitability of the operation, despite high rents.
Between these two extremes, cities like Lille or Montpellier offer a compromise. The purchase price remains more accessible than in the largest metropolises, but the operation only really becomes interesting until if the accommodation is kept for several years after studies or re-rented. “In cities where prices are below 2,000 or 3,000 euros per square meter, it can really be worth buying rather than renting. We can have a monthly payment equivalent to, or even lower than, the rent”summarizes Sandrine Allonier.
Amiens, the example of a city where parents take the plunge
In Amiens, the trend is already well established. Dominique Buquet, director of an agency L’Adresse, observes a change in family behavior. “In previous years, we mainly relied on rentals. Today, we see that more and more families are buying. Parents of medical students, in particular, know that they will stay four, five, even six years. They buy and, often, a second child then benefits from the accommodation. »
The professional cites the recent case of a family having purchased accommodation for their daughter admitted to medicine. The youngest joined the same faculty a few years later before the property was finally kept as a rental investment. The Amiens market facilitates this type of operation. A studio generally sells for between 80,000 and 110,000 euroswhile a studio is rented around 550 euros per month and a two-room apartment between 600 and 650 euros. “With a good contribution, the monthly payment can be lower than the rent of a studio. Parents mainly look at long-term profitability”explains Dominique Buquet.
At how many years of study does the purchase really become profitable?
The length of studies is probably the most important criterion. Buying a studio for a child who is preparing for a short course does not present the same interest as for a student who is embarking on medical studies, an engineering course or a long university course. “ If your child is entering BTS, it may not be worth it. On the other hand, for medical studies, where we know that there will be several years left, the calculation becomes much more favorable”explains Sandrine Allonier.
The expert also recommends reasoning on a minimum duration of five years. Below, notary fees, credit-related costs and possible co-ownership expenses risk weighing too heavily on the financial balance sheet. Added to this is another question: What will the child do after his studies? If the home is resold quickly, the acquisition costs will rarely have been amortized. On the other hand, if the parents keep the property to rent it, the investment can take on a completely different heritage dimension.
When is it better to rent rather than buy?
Purchasing is not always the best solution. If the student’s path is still uncertain, rental retains a major advantage: flexibility. “A student can go for a semester abroad, an internship in another city or decide to join a shared accommodation after a first year. Renting makes it much easier to adapt to these changes”recalls Sandrine Allonier.
She also invites parents to look beyond just the years of study. Housing intended to be rented subsequently must meet new regulatory requirements, particularly in terms of energy performance. Buying a thermal strainer today could result in significant work before you can put the property back on the rental market.
Ultimately, there is no universal answer. For a family with an income, whose child undertakes long-term studies in a city where prices remain affordable, the purchase can constitute an excellent heritage investment. On the other hand, if the duration of studies is short, the course is likely to evolve or the local real estate market is already very expensive, renting often remains the most prudent solution.
