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Realtors Share 14 College Towns Where House Prices Are Still Affordable

While living close to a major university often means easy access to sports, arts, great dining, and more — college towns also provide unique opportunities for homeowners and investors alike.

By Laura Gesualdi-Gilmore

Edited by Lauren Wellbank

Updated Feb. 18, 2025

College towns are attractive to potential home buyers for an array of reasons — they provide access to large and often lively communities, job opportunities, and for investors, a reliable rental market that can help pay for your mortgage if you do buy property.

If you’re considering buying in or around a college town, consider one of these 14 towns real estate experts say are great deals for buyers — and prices may even drop.

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Fort Collins, Colorado

Brett Johnson, Colorado real estate agent and owner of New Era Home Buyers, points to the Fort Collins area, which is home to Colorado State University. Johnson said now is a great time to buy and the town “offers a combination of affordability and opportunity for growth.”

If you’re looking to invest, Fort Collins could lower your financial stress as rentals tend to go quickly, Johnson says, adding that the town also boasts safe neighborhoods and a vibrant downtown.

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Ann Arbor, Michigan

The University of Michigan makes Ann Arbor an attractive location for those who want to enjoy a lively community or are considering investing in a hot rental market.

Ann Arbor has a pricey median home sale price, just over $440,000, but Samuel Kile, a real estate expert and house flipper with Loyal Homebuyers in Indianapolis, notes “with affordability becoming a challenge and a slight dip in demand,” price stabilizations and corrections are possible.

Tucson, Arizona

Tony Ray Baker, a REALTOR® with Re/Max Professionals in Tucson, says a few cities around Arizona fit the bill of a lively college town with great affordability — including Tucson.

“The median home price is $303,400, and the average rent for a two-bedroom apartment is $1,286,” Baker says.

“You have good rents and low cost to purchase,” he continues. “The University of Arizona provides real steady rental demand, especially for student housing.”

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Athens, Georgia

“A first-rate track scene and pleasant folks that love to speak round a porch,” make Athens an ideal place to buy, says Carissa Kristoff, a realtor with C Kappa Corp/Berkshire Hathaway HS Select Properties.

Home to the University of Georgia, home prices in Athens have been falling over the past year, with Redfin putting average home sale price at the end of 2024 at $328,000.

Akron, Ohio

Akron’s median home sale price currently sits at just $130,000, according to Redfin — and Cory Pinter, a real estate investor with Inherited House Guide, says it’s attractive to investors or buyers looking for that college town feel for a number of reasons.

“Akron is home to the University of Akron, an urban research university, located in the heart of the downtown area,” he says, noting that the neighborhoods surrounding the city center have many older homes that sell for cheap and can be converted.

Tallahassee, Florida

Danielle Andrews, a real estate agent with Realty ONE Group, says that Tallahassee “checks all the boxes” for investors looking to buy in a thriving college town — including affordability.

Andrews says that the town is walkable, located near many shops and restaurants, is home to two major universities and a state college, and has many investment properties for under $250,000.

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Tempe, Arizona

Tempe is a lively city and home to Arizona State University. Baker notes that the median home price is just over $426,000, and two-bedroom rentals go for an average of $1,995 a month.

“The tech and business growth in the Phoenix and Tempe areas would increase long-term property value,” he adds.

Fort Wayne, Indiana

There are several universities in Fort Wayne, with Purdue University Fort Wayne probably being the most well-known, which means the area has a large student population.

“There’s currently a shortage of affordable housing for these students,” Pinter explains, so this could be the prime opportunity for investors. The median home sale price is just over $217,000, which means that many people can still afford to buy something for themselves or as an investment property.

Knoxville, Tennessee

David Flanders, owner and founder of HomeVisors Collective in Connecticut, points to Knoxville as a strong option. Home of the bustling University of Tennessee, the median home sale price in the area is still a reasonable $320,000, according to Redfin.

“College towns also tend to have growing job markets and local businesses that support housing stability,” Flanders says. “These places have a lot going on and also attract young professionals looking for affordable housing.”

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Flagstaff, Arizona

Flagstaff is Baker’s priciest suggestion in Arizona, but Northern Arizona University keeps the area lively and provides a steady stream of renters for those looking to invest in property.

“Flagstaff’s median home price is $565,400. Their average rent for a two-bedroom is $1,996, very comparable to Tempe’s, but much higher to purchase,” Baker explains.

Austin, Texas

Home to the University of Texas, Austin’s housing market has been expanding rapidly in recent years, but Alexei Morgado, realtor and CEO/founder of Lexawise Real Estate Exam Preparation, suspects prices will be heading back down soon enough.

“Recent analysis indicates things have started cooling off,” Morgado says. “The population growth is trending lower.” That means the city’s average home price of $536,000 could plunge.

Bloomington, Indiana

Bloomington, home to Indiana University, recently saw a spike in demand for homes, with the average home sale price rising to $290,000 at the end of 2024. But Kile says things are cooling off as interest rates go up — and the ideal time to buy may be approaching.

“With an increase in available inventory, buyers could see more negotiating power in the coming months,” he explains.

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Orlando, Florida

Orlando may be more known for its theme parks than its universities, but it also happens to be a college town with a growing tech sector and a highly sought after climate, Morgado says.

“Orlando, home of the University of Central Florida, has also seen lower home prices,” he says, adding that these current market conditions can create an unparalleled opportunity.

Gainesville, Florida

Gainesville is attractive to buyers for a myriad of reasons. While the weather, the University of Florida, and the low median home sale price — a reasonable $258,000, according to Redfin — may be the initial draws, it’s also a smart choice for investors looking to earn extra income.

“Demand for rentals is also strong,” Flanders explains. A steady population of university staff and students coming and going “helps keep rental units filled year-round.”

Bottom line

Having a major university nearby usually means easy access to recreation, great dining, and lively communities for residents, which makes them a big draw for homebuyers.

As for investors, buying property in these markets can be a path to build wealth as students and school employees often look for rentals nearby, which can help create passive income streams that don’t require a lot of extra work.

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