Even though college costs are mounting, paying for school comes down to more than just tuition and fees. You’ll also need to find a place to live during your college years.
According to The Institute for College Access & Success (TICAS), four out of every five undergraduate students stay in the state, opting for an in-state public institution or a community college. That leaves about 20 percent of undergrads to travel out of state for college.
Regardless of where students go to school, room and board are necessary college expenses. For some students, housing costs are increasing just as much — if not more — than tuition.
What We Spend on Housing
Americans are stretched thin when it comes to paying for housing. According to the Census Bureau, almost half of renters, or about 21 million households, spend more than 30 percent of their income on rent.
The U.S. Department of Housing and Urban Development (HUD) says spending more than 30 percent of your income on monthly housing costs makes you cost-burdened. Severely cost-burdened households spend 50 percent or more of their monthly income on housing, like rent or mortgage payments and utilities.
The Census says renters pay more of their income than homeowners with a mortgage — 31 percent to 21 percent, respectively. The median cost of housing for renters is $1,406 a month. This matters for students, as those who opt for off-campus housing and aren’t living with family to offset living costs may need to rent.
Housing costs vary so much by where you live, your home type, your living situation (if you’re splitting costs with a roommate), and other factors. According to Zillow, the average rent across the U.S. is now $2,000 per month. While this is what renters paid last year, rents have been climbing for years. Since early 2020 when the COVID-19 pandemic began, rent prices have gone up nearly 30 percent .
Housing Costs Nationwide are Rising (but Income Isn’t)
We tend to spend so much on housing because housing costs have skyrocketed while incomes stay stagnant. The Treasury Department says most folks — 97 percent of the U.S. population — live in a county where median housing costs rose faster than median incomes from 2000 to 2020.
Even though housing costs have significantly risen in the last two decades, wages haven’t. The federal minimum wage is $7.25 per hour — the same rate since 2009 . With more money going towards housing, less cash goes towards other costs, like food, healthcare, and education.
Why Housing Costs Matter to Students
Even though housing impacts many, incoming college students are particularly feeling the burden. Some students are paying nearly as much for housing as they are for tuition and fees, while others are paying even more.
The College Board says on-campus students at public, four-year institutions will pay $13,310 in housing and food costs and another $11,610 in tuition and fees for the 2024-2025 school year. Commuter students will pay $10,390 in housing and food costs — less than $1,000 compared to tuition and fees at public, four-year state schools. Commuter students live off-campus and drive to school compared to their on-campus classmates, who usually walk to class.
Some schools require freshmen to live on campus their first year. This could impact how much you plan to spend on college or which school you ultimately decide to attend.
How Can Students Manage Mounting Housing Costs?
Although everyone's situation will vary, there are ways to lower housing costs.
1. Look for Tuition-Free Colleges
There are a few different state and college programs that offer tuition-free enrollment.
- California. The California Promise program is for California residents who are either low-income, first-generation college students, or from communities underrepresented in college. Many two- and four-year colleges in the California State University (CSU) system offer the program, but not all of them. It’s also limited to certain majors on specific campuses.
- Tennessee. High school seniors can get tuition covered through the Tennessee Promise program, as long as they go into an eligible community or state college. The state also offers Tennessee Reconnect, a grant that covers any remaining financial aid gaps for older college students, or those 23 years of age and up. You can use it and other financial aid resources to avoid borrowing student loans.
- New York. Households earning $125,000 or less can send undergraduate students to SUNY or CUNY schools tuition-free through the Excelsior Scholarship Program. Like Tennessee Reconnect, this is also a “last dollar” scholarship where other grants and scholarships are applied first and Excelsior covers the rest. Columbia University also offers free tuition to families earning $150,000 or less.
Use this list from Best Colleges to find tuition-free options in your state.
2. Live with Family or Friends
While many students may dream of living independently after graduating high school, it may not be financially possible. Rather than moving out and paying your own rent, utilities, and bills, consider splitting those costs with loved ones.
Living at home while going to college would save you from spending more on housing costs if you lived alone. If your family expects you to contribute to the household, work out an amount everyone is happy with to pay for rent, utilities, and food.
Those moving out should try to find other ways to save. Consider living with a sibling, friend, or a group of friends to split household costs. Make sure you have extra funds for the larger expenses, like upfront payments for your first and last month of rent and a security deposit for an apartment. You might need to pay extra for setting up utilities or turning on services.
3. Supercharge Scholarships and Grants
Scholarships and grants are free money. Unlike student loans, these awards don’t require you to repay them, unless under specific stipulations. The more you can win in free money, the less you’ll need to borrow.
Many scholarships and grants are for school-related expenses and fees, including housing. You can use the award money to pay for housing costs just like you would any other college-related expense.Use as many free resources as possible, including federal, state, community, and institutional grants and scholarships. It’s also important to look at private scholarships and grants, like those offered by companies and organizations. You can find awards in line with your major, but also with your race, gender, socioeconomic background, and family history.
The Bottom Line
Not every option will work for every student. Take some time to compare options and see which ones work financially and systematically. For instance, it might be cheaper for you to live at home, but if you don’t have reliable transportation to school, it may not be the best fit for you right now.