As students return to campus this fall, many find themselves in college towns where living costs have soared. Housing prices, and consequently rents, are becoming unaffordable for students and faculty alike. This trend is evident in reports from industry experts. Daryl Fairweather, Redfin’s Chief Economist, points out that rising home-sale prices push rents higher, especially in areas with limited rental options.
Currently, rent is often the largest expense for college students, sometimes even more than tuition. In certain markets, buying a home can be cheaper than renting. Interestingly, living on campus can be even pricier than finding off-campus options.
To give insight into this issue, Redfin analyzed data from various college towns to identify the most and least expensive places to live based on median sale prices.
Most Expensive College Towns
Santa Barbara stands out as the most expensive college town in the U.S., followed by Boca Raton. Both locations are known for their stunning coastlines and prestigious universities. While wages in these areas are on the rise, many residents still struggle with affordability.
Other expensive college towns appear across the nation, often in desirable locations like Washington and northern Arizona. Interestingly, some parents invest in homes near universities, renting them out to students. This not only serves as a housing solution but also reflects a growing trend of parents acting as landlords.
Least Expensive College Towns
On the flip side, Dayton is the least expensive college town, with home prices significantly below the national average. Following closely are cities like Syracuse and Mount Pleasant, which also offer lower costs. While affordability seems promising in these towns, local incomes are often low, complicating the situation further.
A college education can be expensive, and high housing costs only add to the financial burden. According to the College Board, the average tuition continues to rise every year, compounding the stress for students. Therefore, college students searching for affordable housing should reach out to their universities, monitor market trends, and consider options like sharing rentals with roommates or family.
As the landscape of education and housing evolves, keeping a close watch on local market trends can help students make better choices regarding where to study and live.
For those interested in further housing data, Redfin provides extensive resources on the housing market in various college towns. For a detailed look at affordability and assistance, the U.S. Census Bureau also offers useful information about local incomes.
