A West Virginia University study says Morgantown is the state's most expensive place to buy a home or rent an apartment.

The study released Thursday shows the metropolitan statistical area had strong employment in 2008, but housing costs well above state and national averages.

Economist Amy Higginbotham says housing costs are 7.4 percent above the national average and almost 20 percent higher than the next most-expensive area, Harrison County.

She says it's all about demand.

While the national real estate bubble burst, Morgantown kept growing. With more people moving in, housing prices keep climbing.

On average, a 2,400-square-foot new home sold for $362,000 in the third quarter of 2008. A two-bedroom, two-bath apartment rented for $850 a month.