America's Most Affordable College Towns See the Highest Price Hikes

Home prices are growing the fastest In the nation’s most affordable college towns, with some recording double-digit price increases

Home-price growth has been slow across the U.S. for the last several quarters, but many of the nation’s small college towns are seeing double-digit price growth. According to real estate marketing platform Redfin, home prices grew by 2% in May, but in some college towns, home prices grew by more than five times faster.

Many of the college towns with home prices rising the fastest are also among the most affordable places to buy a home right now. That combination is attracting buyers who have been priced out of larger metros, while universities continue to provide a reliable foundation of demand.

- Yingqi Xu, Redfin senior economist

The most affordable college towns are seeing prices grow the fastest

Morgantown, W.V., Syracuse, N.Y., and Tuscaloosa, Ala., lead U.S. college towns in home-price growth, all posting double-digit year-over-year increases of 12.9%, 12.5%, and 10.6%, respectively.

However, State College, Pa., where Pennsylvania State University is located, leads in terms of how fast homes are selling, with the typical home there going under contract in just five days, compared with the nationwide average of 49 days. In this metro, home prices also grew by 10.6% year-over-year.

The most expensive college towns are seeing less home-price growth

While more affordable college towns are seeing home prices grow, many of the nation’s most expensive college towns are seeing prices fall. In Santa Barbara, Calif., for instance, the median home-sale price fell by 9.4% in May to $1.9 million. Likewise, in Boca Raton, Fla., prices fell by 5.7% to a median price of $820,000.

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