Buying a Home is Cheaper than Dorm Costs in 20% of College Metros

College isn’t cheap, and it’s not just tuition draining family bank accounts. 

According to the National Center for Education Statistics, in-state students at four-year public universities paid an average of $9,834 in tuition during the 2022–23 school year. Room and board, on the other hand, came in higher at $12,302.

In other words, the roof over a student’s head often costs more than their education.

That’s where the latest study from Mortgage Research Network gets interesting. After analyzing home prices near 121 universities, the researchers found that at 23 schools, buying a home is cheaper than paying for room and board. For parents willing to become landlords (or at least property owners), the numbers make a strong case for skipping the dorms altogether.

So, what does this mean for real estate agents? If you work in one of these markets, or anywhere near them, you’re sitting on an opportunity to help clients reframe college housing as a real estate investment.

The Top 5 Schools Where Buying Beats Room and Board

Mortgage Research Network calculated the full cost of homeownership (mortgage, taxes, insurance, maintenance, groceries) and compared it to each school’s published room and board expenses. 

They factored in rental income from roommates and expected appreciation, then looked at the bottom line over three years.

Here are the five best college towns where buying comes out ahead:

1. Temple University (Philadelphia, PA)
• Avg. home price: $234,799
• 3-year room & board: $50,904
• Savings when buying: $29,742
• 10-year projected gain: $73,030
2. Marshall University (Huntington, WV)
• Avg. home price: $137,909
• 3-year room & board: $38,556
• Savings when buying: $18,805
• 10-year projected gain: $33,690
3. University of Delaware (Newark, DE)
• Avg. home price: $365,150
• 3-year room & board: $44,514
• Savings when buying: $16,696
• 10-year projected gain: $67,366
4. University of Alabama (Tuscaloosa, AL)
• Avg. home price: $227,250
• 3-year room & board: $44,520
• Savings when buying: $16,353
• 10-year projected gain: $32,598
5. University of Memphis (Memphis, TN)
• Avg. home price: $151,722
• 3-year room & board: $31,032
• Savings when buying: $15,171
• 10-year projected gain: $51,053

For parents willing to make the leap, these numbers turn “overpriced dorm cafeteria burritos” into potential six-figure real estate returns.

Here’s the full list of the 23 universities where buying a home is cheaper than paying room and board, based on the Mortgage Research Network report:

1. Temple University (Philadelphia, PA)
2. Marshall University (Huntington, WV)
3. University of Delaware (Newark, DE)
4. University of Alabama (Tuscaloosa, AL)
5. University of Memphis (Memphis, TN)
6. Louisiana State University (Baton Rouge, LA)
7. University at Buffalo (Buffalo, NY)
8. University of South Carolina–Columbia (Columbia, SC)
9. Kent State University (Kent, OH)
10. Rowan University (Glassboro, NJ)
11. University of Pittsburgh (Pittsburgh, PA)
12. West Virginia University (Morgantown, WV)
13. University of Louisiana at Lafayette (Lafayette, LA)
14. Ohio State University (Columbus, OH)
15. University of Illinois Chicago (Chicago, IL)
16. University of Cincinnati (Cincinnati, OH)
17. University of Southern Mississippi (Hattiesburg, MS)
18. Arkansas State University (Jonesboro, AR)
19. Liberty University (Lynchburg, VA)
20. University of Wisconsin (Milwaukee, WI)
21. University of Illinois Urbana–Champaign (Champaign, IL)
22. University of South Florida (Tampa, FL)
23. Vermont State University (Randolph, VT)

What Agents Should Know About the Math

This isn’t just about comparing dorm fees to mortgages. The study assumed:

• Parents would take out a mortgage with a 10% down payment (treated as equity, not a loss).
• Two roommates would live with the student, covering about two-thirds of market rent.
• Properties would appreciate based on local trends.

For example, at Louisiana State University, the monthly ownership cost was estimated at $1,849. With roommates contributing $930, the real monthly cost dropped to around $900. That’s hard to beat when dorms and dining plans often run higher.

The catch? Parents essentially become landlords. They’ll need to factor in property taxes, insurance, and maintenance. 

In some markets, those costs wipe out the advantage. At the University of Illinois in Champaign, a $576 monthly tax and insurance bill made ownership unprofitable after just three years.

Why Housing Costs Matter More Than Tuition

One of the most striking points in the report is how housing eclipses tuition as the real financial burden. 

Families expect college to be expensive, but many assume tuition is the main driver. Instead, the recurring cost of on-campus room and board, or an off-campus apartment, ends up being the bigger line item.

That’s where agents can add real value. By reframing the conversation, agents can show clients that student housing isn’t just a sunk cost. It can be an investment with long-term upside.

Positioning Yourself as the Expert

Not every parent wants to deal with tenants, clogged sinks, or security deposits. But plenty of families will see the logic if they have the right agent walking them through the numbers.

If you’re in a market like Philadelphia, Memphis, or Newark, these findings can help you:

• Educate clients about how homeownership near campus compares financially to dorm living.
• Highlight appreciation potential and long-term wealth benefits beyond the student’s four years.
• Frame the purchase as a head start on homeownership, not just a temporary fix.

Key Takeaways for Agents

• Housing costs often outpace tuition, making real estate a smarter financial play for some families.
• In 23 college towns, buying a home is cheaper than paying for room and board, with potential 10-year gains of up to $70,000.
• Agents in these markets can position themselves as advisors, helping parents and investors evaluate whether buying makes sense.

The decision to buy a home instead of paying for dorm life isn’t right for every family. But for some, it’s the difference between three years of rent receipts and a property that builds equity long after graduation.

For agents, the opportunity lies in connecting the dots. The data is there. The financial upside is real. Now it’s about helping parents see that buying in a college town isn’t just about housing their student; it’s a lesson in long-term real estate strategy.