Like much of Alabama and other parts of the country, SEC college towns have experienced a sharp increase in the cost of rent, according to a study conducted by three universities, including the University of Alabama.
In fact, rent prices across the 14 cities with SEC universities rose 8.22% on average over the past year, double the national average of 4.11% over the past 12 months ending in June, according to the Waller, Weeks and Johnson Rental Index. The index examines the entire stock of homes and apartments across 100 metro areas throughout the U.S.
Dr. Bennie Waller, the William Cary Hulsey Faculty Fellow in the UA Culverhouse College of Business and a research associate in the Alabama Center for Real Estate, believes that while the rent has gone up, cities with SEC institutions are still affordable for prospective students.
“Not only does the SEC offer great academics and athletic programs, but also provides an affordable rental market for students,” said Waller.
However, Waller did say that one SEC town’s rent is quickly making it the most overpriced out of the group.
“Rent in Oxford (Miss.) is wildly rising and becoming more expensive,” he said. “There’s less real estate and as a result, prices are sky-high.”
Oxford’s rent increased by 20% this year alone and, according to the study, it is the most overpriced city in the conference. Rent is nearly 16.5% more than would be expected based on long-term leasing trend that renters must pay.
In more bad news for the Magnolia State, Mississippi State in Starkville, had the second highest rent increase out of any SEC town, experiencing a hike of 14%.
On the opposite end of the rent spectrum, LSU in Baton Rouge, La., had the smallest annual increase. Rent through June rose less than a percentage point.
While the rent has increased in SEC towns, it is still better than national average. The average monthly rent in SEC cities in June was $1,541, compared to the national average of $2,054.
No city hosting an SEC institution has an average monthly rent costlier than the national average.
Austen Shipley is a staff writer for Yellowhammer News.
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