Out of 119 cities that host a Football Bowl Subdivision (I-A) university, Muncie has the most affordable housing, which means cheaper rent for Ball State University students, according to a recent report.
Lori Silbert, spokeswoman for Coldwell Banker Real Estate LLC, said the company released its annual College Home Price Comparison Index on Tuesday.
According to the report, the average Muncie house costs $150,000, compared to Lafayette, where houses cost $184,333 on average, and Bloomington, where the average cost is $198,000. Palo Alto, Calif. topped the charts with the most expensive average home costing more than $1.6 million.
Mike Hicks, director of the bureau of business research, said the lower housing costs mean Ball State University students spend less on rent for off-campus housing.
"This is great for Ball State as a university because what it suggests is that the total costs of attending college at Ball State is less than other schools," Hicks said. "If you're a student thinking about going to college, one of the biggest contributors to what you think about is housing costs."
David Siroty, senior director of public relations for Coldwell Banker, said the low housing costs will also provide students with affordable places to live after graduation.
"Likely, you're not going to graduate and get a 2,200-square-foot house," Siroty said. "You will want a smarter home worth less."
President Jo Ann Gora said in a press release Ball State is proud of the ranking.
"The university has a long tradition of working together with the city to promote economic and community development," Gora said. "These projects strengthen our economy, helping to make Muncie a wonderful place to live. I'm confident that those partnerships will continue in the future, hopefully keeping Muncie high on the most-affordable list for many years to come."
Tom Collins, Director of Intercollegiate Athletics, said the ranking will help the athletic department recruit coaches and administrators. The university has already used affordable housing in Muncie to entice potential recruits, Collins said.
Siroty said Muncie has low housing costs because it is in the Midwest, which usually does not have high real estate prices.
Hicks said an increase in supply and a decrease in demand for housing might also be responsible for lower housing costs.
"This was a vibrant, booming town when Ball State emerged on the scene," Hicks said. "The demand for housing has dropped because Muncie has lost a lot of jobs, and there is more housing than needed."
Kyle Shaner contributed to this report
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