I’m often met with what I can only say is “bemusement” when fellow attorneys see me biking to get from place to place. Even after 7 months at my new job, the executive director of my organization still asks me every time he sees me whether I biked into work that day. Admittedly, biking is a weird thing for a lawyer to do. Most people don’t bike as a mode of transportation, least of all, “big shot” lawyers.
Besides the way I choose to move around a city, I’ve also noticed that there seems to be an expectation about where a young lawyer is supposed to live in a city. I was reminded of this fact at a recent board meeting that was being held at my old law school. It’s a pretty young board – most of us are between 3 and 7 years out of school, so not that far removed from the student life. A lot of the board members are also fellow classmates of mine, and before our meeting, we got to talking about the nostalgia of being back on campus. Many noted that they hadn’t been back on campus in years.
For me, being on campus was completely normal. I live in a college neighborhood, a little less than a mile from campus, and I bike or walk through campus every single day. When I first moved here, I wasn’t super excited about it. But I’ve since grown to love the neighborhood. I feel like there’s an energy that you get from living around students. Not to mention the financial benefits I get from living here.
When I explained this fact, I was met with the same “bemusement” that comes when people see or hear that I bike to work. Really? A young attorney and dentist living in a college neighborhood? How interesting (read -what a weird thing to do).
The Traditional Path People Take When Choosing Where To Live
There’s a normal path I see a lot of attorneys and other professionals take when choosing where they live. Many start off living near campus, in primarily lower-cost, student-centric neighborhoods. This makes sense – school (especially law school) is tough, so you want to be close to class.
After graduation, a lot of young attorneys moved out of those student neighborhoods and into luxury apartments in trendy neighborhoods populated by other young professionals. Indeed, every person in my starting associate class followed this path. After a few years of practice, most young attorneys seem to buy an expensive house in an expensive neighborhood for “adults.” Now that I’m 5 years out of law school, a lot of my fellow attorneys are starting to take this path, trading away the downtown luxury apartment for a nice house in an expensive, residential neighborhood.
But why is this the path that people are supposed to take? Sure, I can think of some reasons. Schools are probably the main factor – but then again, I see a lot of older people sending their kids to private schools that aren’t in those neighborhoods, so that doesn’t always explain the reason to live in a particular place. Proximity isn’t the case either – if anything, most of these neighborhoods are farther away from work.
When I think about it, it seems like the main reason people choose where they live in a city is that that’s just where they think they’re supposed to live. College neighborhoods are for college kids. Cool, expensive neighborhoods are for young professionals. Expensive, quieter neighborhoods are for people who’ve graduated beyond the hip, apartment living. But there’s nothing that says those neighborhoods are limited to those demographics.
Advantages of Living in a College Neighborhood
I’ve never thought about where I live as particularly weird, but I guess when you compare it to the traditional path most lawyers and other young professionals take, it is kind of weird. But, like with a lot of things in life, there are a lot of advantages when you choose to stray outside of the traditional path.
As I’ve thought about it more, the fact that my wife and I live in a college neighborhood gives us advantages that I think are helping to keep us on the path towards financial independence. You could think of it as “neighborhood arbitrage.”
Some of these advantages include:
Less Pressure to Keep Up with the Joneses. The great thing about living in a college neighborhood is that you don’t have a lot of pressure to keep up with others. College kids aren’t flashy, especially when it comes to their housing. You don’t feel like you need to spend money building a new addition to your house or hire gardeners to give you that perfectly manicured lawn.
A Sense of Humbleness. A bit of an offshoot of the point above, but you develop a sort of humbleness when you’re living in a neighborhood that isn’t considered the fancy neighborhood. When you’re humble, you’re much more likely to be satisfied with what you have and far less likely to succumb to lifestyle inflation.
A High Prevalence of Non-Motorized Modes of Transport. Perhaps my favorite thing about living in a college neighborhood is not feeling a ton of pressure to have a car. I think that whether you bike as a mode of transportation often comes down to just how normal it feels. The less normal it is, the less likely you’ll do it. But in a college neighborhood, I’d argue that biking is the primary way most people get around, which makes biking places much easier (and more normal) to do. Even better, college kids are the masters of using other forms of non-motorized transit. I see people skateboarding to class in the morning and don’t even think twice about it. Imagine how weird it would look to see someone skateboarding to work in a rich neighborhood.
Density. A heavy reliance on non-motorized modes of transport means that density happens by necessity. College neighborhoods are dense – which means that you can get around just by walking or biking. I think density is good for neighborhoods, and in college neighborhoods, you seem to get a lot less backlash against increased density. A lot of the reason people pick trendy neighborhoods is because they’re marketed as walking friendly. If that’s your criteria, college neighborhoods have that in spades.
Easy To Turn Into An Investment Property. Something I’ve recently realized is that, if we ever do move, turning our house into a rental property is pretty easy to do. We’re pretty much guaranteed to find a renter if we want one. The risk of unpaid rent is probably less too when you consider that a college house rents to 4 or 5 people, each on the hook for the rent. Add in parents as co-signers and that’s 8 to 10 people that are responsible for paying rent.
Buck The Trend – Think About Where You Live
Ultimately, I think a lot of people end up in their neighborhood simply because that’s where they think they’re supposed to live. Instead of just doing what you think you’re supposed to do, I recommend taking a little bit of time to understand why you want to be in any particular neighborhood.
Admittedly, this isn’t something I’ve ever really done. When I started law school, I lived in the coolest neighborhood I could because I wanted to be a cool, young professional. That was pretty much my only criteria. I literally remember asking my buddy what the coolest neighborhood was when I moved for law school. And then I found an apartment there.
My wife bought the house that we live in long before I met her. If she didn’t own this house, there’s probably no way I would ever have lived in a college neighborhood as a grown adult. It’s lucky this happened, as I think, as much as anything I’ve read, where I live has impacted the way I live the most.
On the road to financial independence, where you live does matter. Folks like Mr. Groovy or Physician On Fire show us the power of geoarbitrage on a nationwide basis. You can even break it down further to the city level, which is what my wife and I have done, albeit by accident.
I really do think that living in a college neighborhood has helped to change my outlook on life. I can bike to work or to the store, or walk around in my raggedy clothes, or have a non-perfectly manicured lawn without feeling bad. Are there downsides to a college neighborhood? Of course, there are, just as there are positives and negatives to any neighborhood. You’ve got to pick what’s more important to you, and what’s not as important.
For me, the energy I get living here and the fact that I can live without feeling a lot of pressure to be fancy is what does it for me. Other people can live in their fancy neighborhoods – I’m pretty content where I am.
Mr. Groovy says
Sorry I missed this, Kevin. I’ve been a bit preoccupied. But thanks for the shout-out and thanks to Fritz for tweeting about RockStar Finance featuring you.
Another advantage of living in a college town for someone my age is how it can keep you young. And of course, those Solo cups help.
Great post my friend.
IZM Credit Services says
Great article, I like the feel of college neighborhoods.
Some have the best pubs , clubs, nightlife and shopping available.
Lower cost of living which makes it possible to pay bills on time & build good credit scores.
You’re right College kids are the best at figuring out how to get around town using their own body power.
Adam @ Minafi says
“Neighborhood Arbitrage” is a great term! I like it. The sense of humbleness and alternates forms of transit are the big ones to me. Seeing countless homeless people on the street each day brings things back to reality real fast. It’s easier (for me at least) to ignore problems of they’re out of sight, or I’m not reminded about them. If everyone with influence (further along in their careers like you mentioned) isn’t seeing those problems, they’re far more likely to be passed over.
Have any coworkers been inspired to move closer and try a similar lifestyle?
Financial Panther says
Hmm – a few coworkers have mentioned trying to bike to work. I have some coworkers that live not too far away in St Paul and could easily do so, but they always end up driving. But I might be inspiring people since they see me biking in everyday.
Steveark says
College towns are great but why do you stop at neighborhood arbitrage? Picking a small rural college town would cut your living costs that much more. Plus big city pay rates are only slightly higher that small city lawyer salaries, generally nowhere near enough to cover the higher costs of living. I think the reasons you only arbitrage so far and not further are similar to the reasons your fellow grad chose plush McMansion neighborhoods, quality of life. I like the way you think, but in my case I took geo-arbitrage all the way to rural Arkansas and made big city money in a low cost neighborhood. But in my personal value system being surrounded by a lot of people carries a negative value while in yours the energy of the neighborhood is a plus. Great post, thought provoking.
Financial Panther says
Very true Steve – I do make a choice to live a little nicer than others. I choose to live where I live because I want to. Also, I’m scared of the country cuz I’m just such a city guy. Also, jobs I guess – my wife is a dental specialist, and it requires a larger population to make it as a specialist in dentistry. But yes, in the end, it comes down to choices – I choose to live this way, even though I could live more expensively or less expensively. It’s a nice balance for me I feel.
Lynne says
I’m 57 and still live the campus life here in the Swamp… bikes and scooters everywhere! I’m about 4 blocks off campus. Being around young people keeps you young.
Financial Panther says
Don’t forget skateboards too! And rollerblades. College kids are the best at figuring out how to get around town using wheels and their own body power.
Troy @ Bull Markets says
Haha I would never want to live in a college neighborhood. I never even enjoyed living on campus when I went to uni. Just too many crazy things going on especially during weekend nights.
Samian says
What do you think about those who are renting in a low-income neighborhood? It seems like housing costs are probably the biggest financial liability most Americans have, so perhaps it would seem logical that if you have to buy or rent, do so as cheaply as possible while making the crucial investments for the future based on compound interest.
Financial Panther says
I’ve got no problem with that. In fact, I’ve talked about that before – where the reason we say we can’t do things is because it’s not possible. In fact, most of us have the choice – we just choose not to because of things we make up.
I have a friend currently in law school and he lives in a low-income neighborhood now. Most people would say it’s an unsafe neighborhood and would refuse to live there, but he’s doing fine. And saving a lot of money doing it. He did the same thing even when he wasn’t in law school, living in low-income neighborhoods that are not the typical neighborhoods young, professional millennials live in. These weren’t even gentrifying neighborhoods, they were just low-income neighborhoods. It’s up to you whether you want to do it or not.
Jess says
Interesting points. I do think that one disadvantage of living in a college neighborhood is the parties. College neighborhoods tend to be noisy and disturbing. Also, I think people like having real neighbors rather than renters who change every year. Most of the faculty in my department don’t live close to campus because of this. The ones who do live close to campus actually moved away because the neighborhood got too filled with college students who were making noise.
I do agree that college neighborhoods tend to be more lively and probably have more / cheaper dining options. I guess it depends what kind of lifestyle you prefer!
Financial Panther says
Yep, definitely upsides and downsides to every place. There are different types of college neighborhoods as well – some are more heavily college than others. Mine is what I’d say is a mix – still more student centric, but quite a decent number of retired folks who’ve lived in the neighborhood for years. Interestingly, I’ve never really had to deal with college parties in my time here.
Cubert says
This is great, Kevin. I’m with you on this all the way. Funny too – a lot of folks that might give you a “look” probably live in Uptown, which is like fraternity row on the weekend. “Hey man, are you really peeing on my shrubs?!?”
We don’t get down to campus very often, but I love it when we do. So many people on bikes or WALKING. Easy access to amenities, etc. And I have to believe where you’re located now is a huge factor in your Airbnb success.
Financial Panther says
Here’s the lawyer path here –> Law student (live on West Bank); Associate attorney (North Loop or Uptown); a few more years out of law school (house in South Minneapolis or Edina).
freddy smidlap says
i would put the eye candy of living near a bunch of 20 year olds as a benefit. i lived in a student ghetto most of my 20’s and it was great. no matter what you did there was always somebody else doing something worse to take the attention.
Christine Schwalm Design says
You have access to free/low cost entertainment such as lectures, art exhibits, concerts living near a college campus. Dinner options for a meal out are less expensive, too.
Hell yes, to not taking the expected path! I’m getting ready to make some changes (moving to a lower cost part of the country) that I never would have considered previously but I’m realizing that what I value most is financial flexibility and independence. I did the “expected” thing for a while and I ended up in debt and unhappy because I never felt like what I had compared to what everyone else had. Now I do my own thing and I’m happier for it. And the people who genuinely care about me are happier for me.
Financial Panther says
Good luck on the move! We’ve all got things that we’re just supposed to do. It’s the life scripts that have been given to us.
Good point about cheap/low cost entertainment. My wife and I have been going to see free movies over at the student union theater. It’s technically for students, but no one seems to check IDs (and in any event, I still have my student ID and can pass as a student for sure).
Frieda says
I love college towns–I’ve lived in three different ones for a dozen years combined, and my current neighborhood is near a small college (not quite the same thing as living near a big university but there is a good cultural scene for the size). I’ve mostly seen the good side of college-town living. I had never thought about how living near students can make it easier to “live like a student” even when you’re making a professional salary though.
We’ve been thinking of building an ADU (accessory dwelling unit) and offering an option for academic-year leases so friends and family can visit over the summer. The point you make about parental co-signers is an important one in our decision making.
Financial Panther says
When you think about it, we’re all products of our environment. If everyone around you is fancy, you’ll probably start being fancy too. If everyone around you is a broke college student, well, you’ll probably be more comfortable acting like a broke college student, haha.
Definitely not a bad idea with the ADU. Do not underestimate just how much demand a college draws for travelers. I can basically be full for Airbnb guests whenever I want, simply because there are so many students coming into town for college-related events (conferences, interviews, parents visiting, etc). For example, think about when graduation happens – that’s a ton of people coming into town, even for a small college.
Smile If You Dare says
And another thing about a college town.
At the end of every semester, you can walk the streets and pick all sorts of stuff the student throw out or can’t be bothered to pack up and take home with them. I have picked up tons of books, wifi routers, radios, etc.
Financial Panther says
Very good point. I made $1,500 last year selling stuff I literally found in the street. During August, I usually go around and stock up on all the stuff people throw away. It’s awesome.
Mr. MFC | Morning Fresh Cent says
That is awesome that you are able to bike to work everyday. Eco friendly and living a healthy lifestyle. Bravo!
Financial Panther says
It’s a great way to start the morning!
Physician on FIRE says
You left out the biggest benefit of living in a college neighborhood: $5 all-you-can-drink Solo cup ’til the kegs run dry. Every Friday and Saturday night!
There are some downsides, too, though. Like the drunkards that might pass out in your lawn after drinking from said Solo cup for seven hours. Noise, renters, and landlords that don’t care much about the upkeep of neighboring properties, etc…
I used to live not far from you, and one night, my roommate and I woke up to find a man passed out on our couch. He had opened up some crackers, cheese, and Spam (not sure why even had Spam), made a snack, and fallen asleep. The front door to the building was normally locked, but our apartment door had not. We got better about locking it after that.
Other benefits generally include good cheap eats (at restaurants, not my living room!), lots of low-cost cultural activities, and top-notch sporting events. Unless you’re stuck with the Golden Gophers. But the games are still fun.
Cheers!
-PoF
Financial Panther says
Haha – good point. Definitely realize the downsides – in the winter myself and my neighbor are pretty much the only people that shovel our sidewalks, and it’s not uncommon to see grass get very long in the summer. I’d say don’t underestimate how good college kids can be though – my neighbors directly to the right of me have never thrown a party and they’ve even randomly brought me cookies and ice cream for no particular reason. I’ve only had one time where I heard a big party going on down the street from me – and it seemed to get shut down pretty quickly.