Paying upward of $12,000 a year for housing was the tipping point for a South Carolina mother whose son transferred to Clemson University. The cost of dorms and trendy off‑campus towers in the area often exceed 4 figures monthly per student. She estimated on-campus housing in the high four figures per year. Upscaled apartments quoted $1,000 to $1,200 monthly. She realised that this recurring rent was a sunk cost. It offered no residual value after each payment. National data show college and university room and board rental costs have increased faster than tuition at many 4‑year colleges. Currently, data shows that housing costs exceed tuition fees at tertiary institutions.
From Dorms to a Plan
LeAnne Carswell, a 51-year-old real estate agent in South Carolina, began scouting for rental alternatives for her son. After a year in a shared dorm, he and his friends started touring new high‑rise apartments. These places near campus were priced at around $1,000/$1,200 per month in a place that still required roommates. Carswell then decided that if annual rent approaches 5 figures, home ownership could end up working financially over time, stabilizing costs. As she later told Insider, the aim was to stop “throwing it away” and redirect housing payments toward equity rather than pure expense
The Townhome Details
Roughly 10 minutes from Clemson, Carswell found a furnished 2‑bedroom,2‑and‑a‑half‑bath townhome in Pendleton, South Carolina. She purchased it for about $227,000 in cash from a seller who had owned it for only a few months. The home offered 1,523 square feet and a single-car garage, with all 3 bedrooms upstairs. This would allow her to house her son while potentially being able to rent an extra room to alleviate costs. Closing occurred in late winter, leaving a buffer to organize use and tenanting before the next academic cycle.
Rent Math vs. Ownership Math
If current student rentals are at $1,000-$1,200 monthly, high‑rise rent would total $12,000-$14,400 per academic year. This is also still excluding some utilities and fees that often accompany student housing packages. By contrast, ownership centralizes costs into the mortgage or the opportunity cost of cash, taxes, insurance, maintenance, and occasional vacancies. It also preserves resale value as housing usually increases value over time. Ownership also allows for rentals, which, over time, would cumulatively cover the expenditure of the house.
Offsetting Costs by Renting a Room
To cover expenses, Carswell rented one of the bedrooms to a classmate of her son for $775 a month. This provided a consistent cash flow while the son occupied another room. A smaller third bedroom remained unlet initially, leaving optionality to add income later or maintain quieter living conditions. This would depend on which semester and demand of the students. Even partial rental income meaningfully narrows the gap between ongoing costs and equity accumulation compared with paying exorbitant prices for a dorm or an off‑campus tower suite.
Why Student Housing Costs Keep Rising
Experts note that campus housing charges include more than rent. Added costs from bundling utilities, maintenance, and staffing lead to the high rates. Colleges and universities need to recoup a year’s worth of rent during the 8‑month occupancy periods to financially sustain the residencies. National data shows that room and board fees grew significantly over the past decade.
In contrast, inflation-adjusted tuition and fees have gone down in the past decade. In many markets, tight rental supply and costly new construction have also lifted off‑campus prices, narrowing the affordability margin for many. As Robert Kelchen, a professor of education at the University of Tennessee, states that there is a hyper-focus on tuition fees when housing and boarding cost significantly more.
What the Data Shows About Housing and Tuition
According to federal data, average dorm costs at 4‑year institutions rose from about $5,433 in 2012‑13 to $7,456 in 2022‑23. This roughly indicates a 37% increase before adjusting for inflation. Over the same span, average tuition and fees rose by about 26%, meaning the financial burden of tertiary education has tilted toward housing for many undergraduates. Reporting also shows housing and food can meet or exceed tuition for in‑state students at public 4‑years.
In‑campus pricing creates tiers
Experts warn that tiered housing creates “haves” and “have‑nots” on many campuses. Temple lists annual housing between $9,576 and $16,360. Its top housing rate is near in‑state tuition, which starts at $18,864. Campuses offer cinderblock dorms and luxury suites in the same market. Families who can afford to, will steer students into newer, amenity‑rich buildings.
Average housing and food at public 4‑year tertiary institutions reached $12,770 in 2023‑24. That exceeds the average in‑state tuition and fees of $11,260 that year. Private nonprofits averaged $14,650 for room and board in 2023‑24. Tuition and fees at those institutions averaged $41,540 in that year.
Researchers argue affordability reforms must center living expenses, not only tuition. While many focus on tuition fees, housing and boarding costs are often overlooked. Many fear that this pricing structure further entrenches inequity in colleges.
Conclusion
As campus housing and boarding have significantly increased in cost, with a 37% increase over 10 years. Experts, therefore, urge families to consider the full cost of attendance, not just tuition. Newer residence halls and solo living often cost more. The wrong housing decision can add thousands in avoidable expenses over several years. Garrett advises students to match wants to budgets before signing leases.
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