The appeal of these condos lies not in their luxury but in the loophole they offer. Numerous apartments from the 1980s, which feature warped vinyl floors, outdated countertops, and a distinctive musty odor characteristic of West Campus, are still in demand and being purchased.
Families from states such as California and New York are keen to purchase them for one reason: in Texas, out-of-state students can qualify for in-state tuition by owning property and residing in it for a year.
This legislation has fostered a specialized sector of realtors dedicated to assisting families in finding homes close to the University of Texas at Austin.
This approach has the potential to save students more than $100,000 in tuition costs over three years.
Realtors openly promote the strategy, with some even featuring countdowns to the buying deadline on their websites.
Records indicate that more than 150 students have acquired condos fitting this profile since 2019. However, realtors believe that thousands more may have employed this strategy. Students usually hold onto the condos for just the right amount of time to secure in-state rates before selling them, frequently to the next family seeking a comparable opportunity.
According to KUT News, Travis County property records and UT Austin enrollment data were used to determine how families may be using the law to qualify for in-state tuition. They identified out-of-state students who purchased residences near the time of enrollment and subsequently sold them before graduating or leaving the university.
Over 150 students have acquired condos in this pattern since 2019, but the number is higher. Students owned their condos for two years on average—notably, one-third of house sellers sold in under 500 days.
It was undetermined whether all listed owners used their property for in-state tuition due to privacy regulations. KUT News tried to contact dozens of current and former students, as well as their parents, from our list. Most ignored inquiry, while others hung up, said they were the wrong person, or said they were unfamiliar with the procedure.
However, eight out-of-state families told KUT News they purchased condos to qualify for in-state tuition. One family denied using the land for this. No family consented to be named.
Critics argue that the practice is unjust, claiming it provides an advantage to families who can already afford high out-of-state tuition, thereby excluding those who require financial assistance the most. Attempts to broaden in-state tuition eligibility for long-term renters did not come to fruition, leaving property ownership as the most straightforward yet costly option.
As state leaders intensify their efforts to challenge various residency provisions, such as in-state tuition for undocumented students, the legality of leveraging real estate for residency remains unchallenged. It remains significantly profitable for those with the means to pursue it.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed and engaged with what matters most. Subscribe today and join our community of readers staying ahead of the curve.