Land & Development Opportunities in Pennsylvania’s College Towns (2026 Outlook)

2/5/2026

Land & Development Opportunities in Pennsylvania’s College Towns (2026 Outlook) 

Pennsylvania is home to one of the largest and most diverse higher-education systems in the country. From major research universities to regional public campuses and private colleges, college towns across the Commonwealth continue to shape local land markets, development patterns, and redevelopment opportunities.

In 2026, demand in college towns is being driven less by raw enrollment growth alone and more by housing shortages, aging building stock, institutional expansion, and off-campus lifestyle demand. For landowners, developers, and investors, understanding where growth is occurring — and what types of projects are needed — is key.

Development Types in Highest Demand Near College Towns (2026)

Across Pennsylvania, the most sought-after land and redevelopment opportunities near college campuses include:

  • Student-oriented multifamily housing
  • Market-rate apartments and townhomes
  • Mixed-use projects near downtowns
  • Faculty and workforce housing
  • Medical, research, and innovation space
  • Adaptive reuse of obsolete commercial and industrial buildings
  • Limited retail and service commercial near campuses

Vacant land is increasingly scarce in core areas, pushing activity toward infill sites, redevelopment parcels, and edge-of-town tracts.

Major Pennsylvania College Towns: Growth, Demand & Land Pricing

State College / Centre County (Penn State University)

Growth: Strong

Development Activity: Very high

Demand drivers:

  • Persistent student housing shortages
  • Research and innovation expansion
  • Downtown mixed-use redevelopment
  • Typical development types:
  • Mid-rise apartments
  • Student housing
  • Mixed-use infill
  • Townhomes outside the borough

Average land pricing:

  • Core / infill: $250,000–$500,000+ per acre
  • Fringe areas: $75,000–$150,000 per acre

State College remains Pennsylvania’s strongest college-driven land market.

Pittsburgh / Allegheny County (University of Pittsburgh, Carnegie Mellon, Duquesne)

Growth: Strong

Development Activity: Very high

Demand drivers:

  • Medical and research expansion
  • Urban infill demand
  • Tech and life sciences growth

Typical development types:

  • Multifamily
  • Mixed-use redevelopment
  • Adaptive reuse
  • Institutional expansion support

Average land pricing:

  • Urban infill: $300,000–$1M+ per acre
  • Secondary neighborhoods: $150,000–$300,000 per acre
  • Growth is neighborhood-specific, but institutional influence remains powerful.

Philadelphia (Penn, Temple, Drexel, etc.)

Growth: Moderate to strong

Development Activity: High but uneven

Demand drivers:

  • University expansion
  • Off-campus housing demand
  • Redevelopment of obsolete properties

Typical development types:

  • Student housing
  • Mixed-use infill
  • Redevelopment parcels

Average land pricing:

  • Campus-adjacent sites: $400,000–$1M+ per acre
  • Emerging areas: $150,000–$350,000 per acre

Highly competitive with zoning and entitlement complexity.

West Chester / Chester County (West Chester University)

Growth: Strong

Development Activity: High

Demand drivers:

  • Enrollment growth
  • Downtown vibrancy
  • Limited supply

Typical development types:

  • Student apartments
  • Townhomes
  • Mixed-use downtown projects

Average land pricing:

  • Borough / near campus: $200,000–$400,000 per acre
  • Outlying areas: $100,000–$200,000 per acre

One of the fastest-growing college markets outside major cities.

Lancaster / Millersville (Millersville University)

Growth: Moderate

Development Activity: Increasing

Demand drivers:

  • Regional population growth
  • Workforce housing needs
  • Redevelopment opportunities

Typical development types:

  • Apartments
  • Townhomes
  • Mixed-use adaptive reuse

Average land pricing:

  • Infill: $125,000–$250,000 per acre
  • Fringe: $50,000–$100,000 per acre

Bloomsburg / Columbia County (Bloomsburg University)

Growth: Flat to modest

Development Activity: Moderate

Demand drivers:

  • Stable enrollment
  • Affordable housing demand

Typical development types:

  • Student rentals
  • Small multifamily
  • Redevelopment of older stock

Average land pricing:

  • $40,000–$90,000 per acre

Investor-friendly pricing with limited large-scale growth.

Indiana / Indiana County (IUP)

Growth: Flat

Development Activity: Limited but steady

Demand drivers:

  • Existing student housing needs
  • Aging inventory

Typical development types:

Small apartment projects

Renovation and reuse

Average land pricing:

  • $30,000–$75,000 per acre

More of a cash-flow and redevelopment market than a growth play.

California / Washington County (Cal U / PennWest)

Growth: Flat to declining

Development Activity: Low

Demand drivers:

  • Consolidated enrollment
  • Redevelopment over new construction

Typical development types:

  • Adaptive reuse
  • Affordable housing

Average land pricing:

  • $25,000–$60,000 per acre

Slippery Rock / Butler County (Slippery Rock University)

Growth: Modest

Development Activity: Selective

Demand drivers:

  • Regional housing demand
  • Proximity to Pittsburgh

Typical development types:

  • Student housing
  • Small multifamily
  • Residential subdivisions

Average land pricing:

  • $50,000–$125,000 per acre

Kutztown / Berks County (Kutztown University)

Growth: Flat

Development Activity: Moderate

Demand drivers:

  • Stable enrollment
  • Affordable housing needs

Typical development types:

  • Apartments
  • Student rentals

Average land pricing:

  • $60,000–$120,000 per acre

Clarion / Clarion County (PennWest)

Growth: Declining

Development Activity: Low

Demand drivers:

  • Redevelopment
  • Long-term repositioning

Typical development types:

  • Adaptive reuse
  • Small-scale housing

Average land pricing:

  • $15,000–$40,000 per acre

College Town Growth Summary (2026)

Strong Growth Markets

  • State College
  • Pittsburgh
  • Philadelphia (select submarkets)
  • West Chester

Stable / Flat Markets

  • Lancaster / Millersville
  • Bloomsburg
  • Slippery Rock
  • Kutztown

Challenged or Declining Markets

  • Indiana
  • California (PA)
  • Clarion
  • Smaller rural campuses

Why a Land & Development Specialist Matters in College Towns

College town land markets are highly nuanced. Zoning overlays, student housing regulations, neighborhood opposition, and institutional influence all affect value and feasibility.

A land specialist brings: 

  • Zoning and density expertise
  • Redevelopment feasibility evaluation
  • Knowledge of student vs. market-rate housing dynamics
  • Access to off-market and infill opportunities
  • Experience coordinating with municipalities and institutions

For sellers, this ensures land is positioned correctly — not underpriced or marketed to the wrong audience. For buyers and developers, it reduces entitlement risk and identifies projects that actually pencil.

Final Thoughts

Pennsylvania’s college towns remain some of the most resilient and opportunity-rich land markets in the state — but only when approached strategically. In 2026, success is less about speculation and more about understanding demand, constraints, and long-term institutional influence.

The right site, in the right location, with the right plan, can outperform almost any other asset class.