When University of Minnesota junior A.J. Norenberg’s parents realized how much money they were spending each month on rent for an apartment close to campus, they felt there had to be a better option.

“We were throwing $700 a month down the hole,” Todd Norenberg, A.J.’s father, said. “So we thought, is there any way that we can offset this cost with equity?”

For Todd and Sue Norenberg, the answer lay in purchasing real estate for their daughter to live in while she attends college. Last August, the Norenbergs purchased a town home just blocks from the U of M campus. A.J. and three of her friends live in the home, and the Norenbergs are putting their money toward an investment rather than seeing it “wasted” on rent.

The Norenbergs have joined rank with thousands of other parents across the country in what many real-estate analysts say is becoming a national trend. Parents who cringe at the exorbitantly high rent of properties near college campuses have taken advantage of record-low interest rates and a strong real-estate market. Many feel that purchasing a piece of real estate near a college campus is a good investment because the nearby university usually creates a lucrative housing market.

According to an article in the New York Times, realtors in college towns such as Amherst, Mass., Fort Collins, Colo., and Ashland, Ore., report that sales to parents of students have gone up by as much as 25 percent in the last two years.

While the trend may not be as widespread at the University of Wisconsin, Ald. Mike Verveer, District 4, said he has heard of parents buying their children real estate in Madison. He said that recent years have seen the revitalization of owner-occupied condominiums in downtown Madison, which are an appealing investment to parents of UW students.

“I have seen parents purchasing downtown condominiums for their students,” Verveer said.

According to a CNN Money article, condominiums are both popular and have good appreciation potential. According to the National Association of Realtors, condominium prices have been rising faster than those of single-family homes in the last few years, at about 10 percent per year.

In addition, Verveer said the downtown housing market is strong enough to make the purchase worthwhile.

“The downtown real estate is so hot that it’s a good investment,” Verveer said.

However, Stephen Malpezzi, UW professor of real estate and urban land economics, cautions that real-estate investments can be risky for parents who will have to sell the property immediately after their student graduates.

“It’s not so much a problem for an investor who can buy property and hold the investment. But if someone has to sell right away after their child graduates to pay the last tuition bill or whatever, then it’s maybe not such a good idea,” Malpezzi said.

Malpezzi also said it is very hard to forecast what the future will hold for real-estate investments, and the trends of the past two years do not necessarily indicate what the future holds.

“There is never a silver bullet when it comes to investments,” Malpezzi said.

Despite the risk in such an investment, the Norenbergs are pleased so far with their purchase. They looked at town homes for nearly four months before choosing one, and they found that town homes close to campus typically do not stay on the market for more than a week. This has given the Norenbergs confidence in their ability to sell their town home.

“I think being as close to campus as it is, it will be pretty easy to sell,” Todd Norenberg said.

The Norenbergs also have the advantage of living in a suburb only 19 miles from the home they purchased for their daughter. They have found this is convenient when it comes to maintenance issues and managing the property. Their daughter enjoys their close proximity as well.

“The best advantage is that if there’s a problem or if something needs fixing, it can get done right away. I used to live in an apartment, and the maintenance for apartments is so slow and you just never know when they will come to fix things,” A.J. Norenberg said.

The experience has also been a good lesson in responsibility for A.J. Norenberg, according to her parents. Todd Norenberg said owning the home has “definitely” given A.J. a lesson in responsibility, fiscal management and cash flow. A.J. Norenberg agrees.

“Being the daughter of the owner, my friends come to me when they have problems and I have to tell my dad. Also, I collect all of the rent checks and keep the books,” A.J. Norenberg said.

Yet the added responsibility has not dampened A.J.’s enthusiasm for her new living quarters. She enjoys a nicer place that affords more freedoms and is more cost-effective.

“I would recommend this to anyone,” she said.