College towns have long been known for their charm tree-lined streets, cozy cafés, lively campuses, and tight-knit communities. But in 2025, many of these same towns come with something far less charming: sky-high housing costs.
A recent analysis from Redfin, featured in Quartz, reveals the growing affordability crisis hitting America’s most popular college towns. And while the ranking is based on home-sale prices, these trends often translate directly into rising rents putting pressure on students, families, faculty members, and even long-time residents.
What Makes a “College Town”?
For this study, a city needed to meet two main criteria:
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At least 10% of residents are students at a four-year accredited university
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The town is at least 30 miles away from a major metro area with 1 million+ people
This ensures these places function as true college towns not suburbs of big cities. Out of 240 qualifying towns, researchers focused on the top 50 with the largest student populations and at least 100 home sales in early 2025.
The Top 10 Most Expensive College Towns in America (2025)
These towns may be beloved, but living in them is more expensive than many big cities.
| Rank | City / Town | University | Median Home Price (2025) |
|---|---|---|---|
| 1 | Santa Barbara, CA | UCSB | $1,964,170 |
| 2 | Boca Raton, FL | Florida Atlantic Univ. | $822,701 |
| 3 | Flagstaff, AZ | Northern Arizona Univ. | $695,902 |
| 4 | Corvallis, OR | Oregon State Univ. | $568,507 |
| 5 | Orem, UT | Utah Valley Univ. | $517,224 |
| 6 | Eugene, OR | Univ. of Oregon | $501,571 |
| 7 | Provo, UT | BYU | $474,745 |
| 8 | Ann Arbor, MI | Univ. of Michigan | $464,495 |
| 9 | Manchester, NH | UNH + SNHU | $456,096 |
| 10 | Pullman, WA | Washington State Univ. | $452,137 |
These prices are not just high they are barriers for students and working professionals who depend on these college towns for education and employment.
Why Are Housing Costs So High in These College Towns?
1. Demand Always Exceeds Supply
These towns only have so much land and so much housing, but the demand keeps rising:
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Students moving in each year
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Faculty and staff needing homes
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Families drawn to the lifestyle
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Investors buying rentals
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Parents buying homes for their college-aged kids
This competition sends both prices and rents soaring.
2. Limited Housing Construction
Many college towns have strict zoning, environmental restrictions, or community pushback against new apartments or multi-family housing.
This means:
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Fewer rentals
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Fewer entry-level homes
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Higher pricing power for landlords
Even modest one-bedroom apartments can rival big-city rents.
3. University Growth Outpacing Local Housing
Universities are expanding faster than new housing can be built.
More students = more demand = higher rents.
Even graduate student housing can’t keep up, pushing thousands into the private rental market.
4. Parental Buying + Investment Activity
In some towns, it’s common for parents to buy homes for their children rather than pay rent for four years. This:
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Reduces available housing
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Drives home prices up
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Encourages investor interest
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Raises rent expectations in surrounding neighborhoods
5. High Home Prices = High Rents
Landlords often calculate rent based on:
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Mortgage payments
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Property taxes
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Insurance (which is rising nationally)
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Maintenance costs
When home prices soar, so do monthly rents.
In other words: expensive homes equal expensive rentals.
What This Means for Students & Renters
1. Renting Is Becoming a Financial Strain
Students and young renters may find themselves:
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Paying more for shared housing
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Competing with older renters or remote workers
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Having fewer affordable options
Even splitting a home among 4–6 students is becoming costly in places like Santa Barbara and Ann Arbor.
2. On-Campus Housing Waitlists Are Growing
As off-campus living becomes unaffordable:
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Freshmen are prioritized
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Upper-class students get pushed out
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Some end up commuting long distances
Universities are struggling to keep pace with demand.
3. Faculty & Staff Are Being Priced Out
Professors, campus workers, and staff may no longer be able to afford living close to campus.
This affects:
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Hiring
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Retention
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Quality of life
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Travel time
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Operational costs for universities
Some universities are starting to explore workforce housing solutions.
The Bigger Picture: College Towns Are Becoming “Mini Big Cities”
The days of cheap rent and small-town affordability are fading.
College towns now attract:
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Professionals seeking lifestyle amenities
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Remote workers
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Retirees
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Seasonal residents
These groups often have greater financial power than students, shifting the rental market dynamics.
In cities like Santa Barbara and Boca Raton, college town demand merges with luxury real estate demand, creating extremely competitive housing markets.
What Needs to Happen Next?
To ease pressure, experts suggest:
Encourage more multi-family housing
Relax zoning laws to allow more apartments near campuses.
Expand student housing
Universities may need to invest in modern dorms and graduate housing.
Partner with local governments
Joint planning efforts can avoid affordability crises.
Increase transportation options
If students and faculty can live farther away affordably, improved transit can connect them efficiently.
Final Takeaway
College is expensive and not just because of tuition.
For many students, rent is becoming one of the biggest financial burdens of attending university.
From Santa Barbara to Ann Arbor, the 2025 rankings show that housing affordability is now a central issue for college communities nationwide. Understanding these trends helps families plan better and encourages universities and local governments to take action.
Source: Quartz / Redfin
https://qz.com/most-expensive-college-towns-usa-2025?utm_source=chatgpt.com