- Fueled by the AI boom and luxury home sales, Bay Area housing prices continue to climb, pricing out community college students and fueling a deepening housing crisis.
- In response, community colleges in Cupertino, San Mateo, and Fremont are building hundreds of on-campus beds, though demand far exceeds current plans.
- With limited funding and high construction costs, schools face steep challenges, even as new housing transforms outcomes for vulnerable students.
Silicon Valley’s Housing Divide
The Bay Area’s AI-fueled housing boom is leaving community college students behind, as reported by The Real Deal.
Median home prices have hit $4.2M in Palo Alto and $5.7M in Los Altos, with buyers battling over limited inventory. In San Jose, 67% of homes are selling over asking, per Redfin.
While luxury real estate flourishes, students face a different reality: Nearly half of California’s community college students experience housing insecurity, with 25% facing homelessness.
Colleges Step In
Recognizing the scale of the crisis, a growing number of Bay Area community colleges are investing in housing:
- Foothill-De Anza Community College District is converting a 94-unit building in Cupertino into affordable housing, expected to deliver 332 beds by this fall.
- San Mateo Community College District is constructing a 316-bed complex, set to open in 2027.
- Ohlone College in Fremont has announced plans for over 500 beds by 2028.
Despite progress, only 12 of California’s 116 community colleges currently offer on-campus housing—and none of those are in the Bay Area.
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Barriers to Building
The $2B state-funded Higher Education Student Housing Grant Program has provided some relief, but demand far outpaces available dollars. In 2023, the Peralta Community College District lost out on funding for a 306-bed dorm that would have served Oakland and Berkeley students.
Why It Matters
Housing is more than a roof over students’ heads—it can be transformative. After facing homelessness at De Anza College, Andrew Siegler thrived academically once he found stable housing. He’s now preparing to graduate with a 3.75 GPA.
As the Bay Area’s tech economy continues to boom, the growing push for affordable student housing highlights a widening gap between luxury and necessity—and the role of public institutions in bridging it.
What’s Next
Expect more community colleges to explore housing solutions as enrollment pressures grow and housing affordability remains out of reach. But without sustained public funding and faster development timelines, the Bay Area’s student housing crisis may remain unresolved—despite the region’s enormous wealth.
