Five College Towns Offer Homes Under $120,000

Realtor.com has identified five college towns across the United States where the median asking price for a home is under $120,000, offering a stark contrast to the national median asking price which exceeded $400,000 in 2025. These "affordability bastions" are primarily located in the South and Midwest regions of the country, often experiencing colder winters or hotter summers. The real estate site's economists analyzed 231 markets that are home to an NCAA Division 1 university and have at least 15 homes available on the market, ranking them by their 2025 median asking price.

The five most affordable college towns identified are Detroit, Michigan, which hosts the University of Detroit Mercy; Jackson, Mississippi, home to Jackson State University; Pine Bluff, Arkansas, where the University of Arkansas is located; Macomb, Illinois, the site of Western Illinois University; and Peoria, Illinois, which is home to Bradley University. These locations provide a significantly more accessible entry point to homeownership compared to the national average, reflecting broader trends of lower housing costs in these areas.

According to Hannah Jones, a senior economist at Realtor.com, the affordability in these towns is driven by a combination of factors. These include lower land and construction costs, flatter or slower population growth, and a housing stock that was largely developed before the significant price appreciation seen in the last two decades. This economic environment ensures that home prices remain tethered to local wage capabilities rather than being inflated by demand that outstrips supply. The appeal of these towns extends beyond just sports fandom, encompassing the broader advantages associated with educational hubs and the unique town-gown relationships they foster.

The national median asking price for a home surpassed $400,000 in 2025, according to Realtor.com's analysis. This figure highlights the substantial difference in housing affordability between the identified college towns and the rest of the country. The study's methodology involved examining markets with NCAA Division 1 universities, ensuring a certain level of community activity and infrastructure. By focusing on markets with a minimum of 15 homes for sale, the ranking provides a realistic snapshot of current housing availability and pricing within these specific college towns.