Numerous American universities attract people from all over the world. Many families not only send their children to top universities, but some even buy properties near the university towns. They provide accommodations for their studying children and rent out to students for additional income. However, the housing prices surrounding these top universities may not be affordable for everyone, with some reaching over a million dollars. Let’s take a look at how expensive real estate prices are in these top university areas!
Applying to prestigious schools is a dream for many, and besides the high tuition fees, living near university towns is not easy due to the expensive cost of housing. While staying on campus or in school dormitories is ideal for freshmen, these accommodations are often limited, leading students to eventually seek off-campus rentals or for some parents to simply buy a property near the school.
According to the recently released “U.S. News & World Report” for the best universities in 2025, the most expensive housing among the top ten universities is not in Cambridge, Massachusetts, despite being home to Massachusetts Institute of Technology and Harvard University. However, the housing prices are indeed quite high compared to the first-ranked university.
The surprising difference between the most affordable and the most expensive university housing prices is almost 17 times! While generally expensive housing areas are concentrated on both the East and West coasts, there are some affordable housing prices on the East Coast, while the Midwest usually has lower housing prices. Enrolling your child in a region with comparatively cheaper housing prices could significantly save parents money.
Let’s take a closer look at the list of the best universities, along with the local housing and rental costs.
The top-ranked university, Princeton University in Princeton, NJ, has an annual tuition fee of $62,400. Living costs in the area are 0.8% higher than the national average. On-campus housing provided by the school costs $11,910 per academic year. Rent for a one-bedroom apartment according to Zillow is around $2,286, while a studio apartment is approximately $2,250. Although these prices have decreased slightly from a year ago, they are still considered quite high for students.
Fortunately, most freshmen at universities usually have access to on-campus housing. However, buying property in Princeton University town is not easy, with median house prices soaring to $1.325 million – a significant investment even for wealthy families.
Moving on to the second-ranked institution, Massachusetts Institute of Technology is located in Cambridge, MA. First-year students have the option of on-campus dormitories with costs around $13,000 per academic year, varying by room type. Tuition is around $62,000, and local living costs are 11.9% higher than the national average. The median house price in Cambridge is even higher, surpassing $1.35 million.
Harvard University, ranked third, also located in Cambridge, offers slightly cheaper tuition compared to MIT. Approximately 55% of undergraduate students at Harvard receive institutional aid, and 24% of families pay no fees after financial assistance. To access these grants, detailed research is required.
Stanford University in Stanford, CA, ranks fourth and it’s part of the Silicon Valley area, known for high property prices. The median house price in Stanford is $3.725 million, with living costs 17.8% higher than the national average and tuition around $66,000. On-campus accommodation and food cost around $21,315 per academic year. Off-campus rentals in nearby cities like Palo Alto can range from $2,574 for a studio to nearly $3,000 for a single bedroom.
Yale University in New Haven, CT, ranked fifth, offers tuition fees of $67,250, comparatively higher than Stanford. However, the median housing price in New Haven is around $300,000, making it one of the most affordable of the top five universities. On-campus housing costs $11,300 per year. Rentals in the area can be as low as $1,250 for a studio apartment.
These are just snippets of the comprehensive cost breakdown among the top universities in the U.S., providing insights into the housing and living expenses faced by students and families. Each university presents its unique challenges and financial considerations, urging individuals to carefully assess their options before making decisions.