$400,000 homes are the norm nationally. In these 5 college towns, they’re under $120,000

If you desire a place where you can cheer on a college sports team and realistically afford a home, a new ranking from Realtor.com may suggest relocating. Generally, these affordable college towns in the U.S. boast median asking prices below $120,000, according to the real estate site's analysis. Economists examined cities and towns across the U.S. that host an NCAA Division 1 university with at least 15 homes on the market. Then, they ranked these 231 markets by the 2025 median asking price.

Five locations might not immediately spring to mind as typical college towns, but they emerge as affordability bastions. These include Detroit, Michigan, Jackson, Mississippi, Pine Bluff, Arkansas, Macomb, Illinois, and Peoria, Illinois. While the median listing price nationwide surpassed $400,000 in 2025, these locations provide an entry to homeownership that's far more accessible—especially in regions where housing is less expensive.

The affordability stems from lower land and construction costs, flatter or slower-growing populations, and a housing stock largely built out before the last two decades of price appreciation. Hannah Jones, senior economist at Realtor.com, attributes this to the housing prices being tethered to what local wages can support, rather than being inflated by demand exceeding supply.

The appeal of these college towns extends beyond cheering on a sports team. These towns may offer greater diversity, cultural attractions, or transportation options due to the town-gown relationship. This applies to Detroit, where a revitalization has been ongoing, and the housing market remains affordable, particularly for younger buyers. The median listing price in Detroit was $118,462 in 2025.

Peoria, Illinois, may be an appealing option for recent graduates who have completed their degree. With a median listing price of $118,462 in 2025, it stands out as a location where young professionals can still access the wealth-building potential of homeownership, given the scarcity of starter homes nationwide and the challenge of young-professional wages in both renting and buying.