Families buy out-of-state homes to snag tuition discounts at universities

Daily Mail​

7 days ago

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The cost of a college education is now so steep that parents are buying properties to secure in-state discounts for their children. Thousands of parents have begun snapping up condos and houses in Texas so their children can get in-state fee rates at the state's top schools such as Rice University, University of Texas, Texas A&M, and University of Houston.
The average annual cost of college in Texas for those from another state is $24,743. By contrast, residents only pay an average of $8,195, meaning living in-state offers a significant 67 percent discount. However, the in-state discount has recently been abolished for students without legal status.
The average annual cost of college in Texas for those from another state is $24,743. By contrast, residents only pay an average of $8,195, meaning living in-state offers a significant 67 percent discount. However, the in-state discount has recently been abolished for students without legal status. Savings over four years of college tuition, plus the added benefit of their children living in the home throughout their education, can offset the costs of purchasing a home for many families. 'It's the No. 1 choice why my clients are moving here,' Houston-based real estate agent Erwin Nicholas told Realtor.com. 'Pretty much all of my clients are moving to Texas with education-based decisions in mind.'
Families are also drawn to the Lone Star State by its low taxes and significantly lower price-per-square-foot home price tag, Nicholas explained. A property near a renowned college can also appreciate faster than average, as well as spend less time on the market when it comes time to sell. 'They are investment vehicles as well as places for your kids to stay,' he added.
Real estate experts advise families to consider a move to another state in considerable time before their child's enrolment. This is because many states, including Texas and Florida, require the student to have lived in-state for at least a year to acquire the tuition discount. All 50 states offer their residents discounts on college fees, believing that residents' taxes go some way to offsetting the costs of higher education. It also provides an incentive to keep the best and brightest students at local institutions.
Florida provides the best in-state discount, with resident students paying an average tuition of just $4,540. For example, the University of Florida costs $28,658 for out-of-state students and $6,380 for residents — a whopping 77 percent discount.
'You want to get a realtor who is educated on these matters,' Nicholas says. 'I would encourage parents to start thinking about their kids' education not just from a scholarship standpoint and making good grades, but thinking about what states, like Texas, have in-state tuition discounts and what are the rules you should be aware of.'