C
olleges have become so expensive that even wealthy families are seeking ways to save on tuition. One strategy gaining popularity is buying property in the state where their child will attend college, taking advantage of lower in-state tuition rates.

    All 50 states offer discounts to residents, reasoning that they pay taxes offsetting higher education costs. The savings can be substantial: public four-year undergraduate degrees cost an average $28,297 out-of-state versus $9,750 in-state, according to Education Data Initiative.

    Florida tops the list for in-state discounts, with an average tuition of just $4,540. For example, the University of Florida charges non-residents $28,658 per year but only $6,380 for residents, a 77% discount. Connecticut has the highest out-of-state tuition at $37,907, but becomes $15,763 for in-staters.

    Texas offers significant discounts as well, with an average annual cost of $24,743 for non-residents versus $8,195 for residents, a 67% reduction. This has led to many high-net-worth individuals moving to Texas specifically for its excellent universities and lower tuition rates.

    A property near a university can not only provide a significant savings on tuition but also appreciate in value faster than average properties. Realtors knowledgeable about these matters are becoming increasingly important for families planning their children's education.

    However, buying an in-state property comes with its own costs, such as HOA fees, insurance, and maintenance. It's essential to run the numbers to ensure it makes financial sense. Additionally, each state has varying requirements to qualify for cheaper tuition rates, and properties near good schools can sell quickly, making it a competitive market.

    Some argue that this strategy favors those with means over those without, raising questions of equality. Nevertheless, savvy families are using this approach as part of their overall education planning.