Buying a Home vs. Dorm Life: Why Real Estate Wins in 20% of College Towns

Buying a Home vs. Dorm Life: Why Real Estate Wins in 20% of College Towns

College is expensive — but here’s the surprise: it’s not tuition that drains the bank account fastest. It’s housing.

According to the National Center for Education Statistics, the average in-state student at a four-year public university paid $9,834 in tuition for 2022–23. Room and board? $12,302 on average. That means a roof over a student’s head often costs more than their education.

That’s where a new report from the Mortgage Research Network flips the script. After analyzing 121 universities, researchers found that in 23 college towns, buying a home is actually cheaper than paying dorm fees.

The Numbers That Matter

Here’s what stood out:

• At Temple University (Philadelphia, PA), parents could save $29,742 in three years compared to dorms — and gain $73,030 over 10 years through appreciation.
• Similar savings showed up at Marshall University, University of Delaware, University of Alabama, and University of Memphis, with projected 10-year gains ranging from $32K to $67K.

Put another way: what parents usually pay for overpriced dorm rooms and cafeteria burritos could instead become six-figure real estate returns.

What This Means for Families

For parents willing to act as landlords (or at least property owners), the case is strong:

• Roommates help cover the mortgage.
• Appreciation builds long-term wealth.
• Equity doesn’t disappear when the tassel turns.

Of course, there are caveats. Taxes, insurance, and maintenance matter, and not every market pencils out. But in 23 college towns, the math is clear: ownership can beat dorm living.

What This Means for Agents

This data opens a new conversation for real estate pros:

• Educate families that housing costs often outpace tuition.
• Highlight appreciation potential as more than just a four-year plan.
• Reframe dorm rent as equity-building, showing parents they can turn a sunk cost into a long-term investment.

The Takeaway

Not every parent wants to juggle tenants or late-night maintenance calls. But for the right families, buying in a college town isn’t just housing — it’s strategy.

For agents, the opportunity is here: help your clients see that a “college home” can double as an education in wealth-building.

👉 If you’d like to explore this strategy—whether here in Phoenix near ASU or another university town—reach out. I’d love to help you weigh the options and see if homeownership makes more sense than dorm life.