Redfin says home prices are surging in several affordable college towns, far outpacing the national market. According to the report, prices in cities such as Morgantown, WV, Syracuse, NY, and Tuscaloosa, AL, are posting double-digit annual gains – more than five times the 2% nationwide increase in May 2026. State College, PA, also stands out, with median prices up 10.6% to $459,050 and homes selling in just five days – which Redfin says highlights strong demand in university-centered housing markets. Interestingly, the most expensive college towns- Santa Barbara, CA, Boca Raton, FL and Flagstaff, AZ are seeing home prices fall.
“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…Meanwhile, many of the most expensive college towns are experiencing price declines as high mortgage rates and elevated home prices make buyers there more cautious.” Said Yingqi Xu, Redfin Senior Economist.
Click here to read the full report at Redfin.
