NIL Deals Fuel Home Price Surges in College Towns

Median home list prices in college towns across the United States have surged by double digits since name, image, and likeness deals became legal for student-athletes in 2021. This new demographic of young and suddenly wealthy athletes is being eagerly welcomed into local housing markets, according to data from HousingWire.

David Christensen, founder and strategic adviser of eXp Realty’s Sports & Entertainment division, said the trend reflects a fundamental shift. He told HousingWire that NIL has created an entirely new group of young athletes with access to resources they previously lacked. His firm wanted to provide a safe space for those athletes to explore homebuying options.

Major College Town Price Increases

Analyzing median prices before NIL (2019-2020) and after (2021-present), HousingWire Data shows significant jumps in several key markets.

Other notable increases include Tallahassee, Florida and Eugene-Springfield, Oregon, both up 30%. State College, Pennsylvania rose 29%, while Gainesville, Florida and Syracuse, New York each increased 27%. Tuscaloosa, Alabama was up 26%, College Station, Texas 22%, Baton Rouge, Louisiana 21%, and Ann Arbor, Michigan 18%.

Ryan Coleman, broker and founder at Knoxville-based Hometown Realty, has overseen several deals with University of Tennessee athletes. He said it is a great opportunity for business owners and agents to support local youth and the community. Coleman noted the local market area in Knoxville has seen an explosion of growth, which he believes has helped revenue locally.

Guidance for a New Buyer Class

Christensen argues the athletes he works with are often more financially sophisticated than the public assumes. He said there is a misnomer about young people and athletes immediately buying luxury items. Instead, he sees a smart, intuitive group looking to build generational wealth and plan beyond their sporting careers.

Coleman, whose clients have included former University of Tennessee quarterback Joe Milton III, emphasized the importance of character and brand alignment for agents working with student-athletes. He advised choosing clients who reflect an agent's beliefs and character.

EXp Realty is partnering with former New England Patriots defensive end Jarvis Green to educate athletes on their new financial options. Christensen said Green wanted to create a space for athletes to get vetted resources and insights on how to make sound decisions with their new funding opportunities.

Inventory Declines Amid New Demand

Alongside rising prices, active inventory dropped sharply in the NIL era compared to pre-NIL levels, according to HousingWire Data.

Ann Arbor saw the steepest decline at 56%. Syracuse fell 49%, State College 36%, Blacksburg 35%, Bloomington 33%, Baton Rouge 33%, and Tucson 31%. Tuscaloosa is a clear outlier, where inventory actually surged over 200%, from an average of 138 weekly active listings to 443.

Christensen noted activity is widespread, citing aggressive NIL programs at schools like Dartmouth and the University of New Hampshire. He also highlighted significant activity in markets like Nashville and Miami.

The emergence of NIL athletes as homebuyers comes as the average first-time homebuying age has risen to 40, making homeownership increasingly elusive for people in their early 20s. Coleman pointed to growth across university athletic departments, from women's sports to football, producing good character athletes who succeed professionally.

Christensen framed the guidance for young athletes as a positive development for the industry. He said anything done to make it easier for people to experience the American dream of homeownership is the right way to go. He described homeownership over the long term as an extremely stable financial and societal cornerstone.