- SDSU plans a $1B student housing project adding 5.22K beds.
- The development will increase SDSU’s housing capacity to 13K students.
- Concerns over fire risks have been raised but mitigations are planned.
- UCSD is also expanding, with housing capacity set to reach 22K.
- San Diego apartment rents remain high, averaging $2.8K in Q4.
San Diego State University (SDSU) announced a $1B student housing development that will add 5.22K new beds to the College Area neighborhood, as reported by GlobeSt.
Project Overview
The project, called Peninsula, will feature five 13-story apartment towers, a 9-story apartment building, and another 9-story dormitory next to University Towers. Once completed, the new development will raise SDSU’s total housing capacity to 13K students.
University officials stress that the project aims to meet existing student housing demand rather than drive new enrollment.
“The project is a necessary response to the region’s housing crisis and student demand and will provide students with financially accessible and sustainable housing options,” SDSU stated.
Addressing Fire Safety
The Peninsula project site has drawn some criticism due to fire safety concerns. A recent wildfire on Oct. 31 near Montezuma Road came within 10 feet of homes and caused significant traffic congestion.
In response, SDSU stated that the new housing complex will incorporate Type I-B fire-resistant construction, new fire access roads, and a 100-foot fire buffer zone.
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Expanding Housing Options
SDSU’s project follows UC San Diego’s aggressive housing expansion. UCSD now has the second-largest student housing capacity in the nation, behind UCLA, with 22K beds. In 2024, UCSD delivered two new student housing towers at Pepper Canyon West, standing 22 and 23 stories tall.
Looking ahead, UCSD has proposed a $2B housing village featuring six new towers and 6K beds by 2030. Demand for student housing remains high, with UCSD receiving 160.15K applications for fall 2025 enrollment—a new record.
Tight Rental Market
Finding affordable rentals near SDSU and UCSD remains a challenge for students.
According to CBRE’s Q4 2024 market report, the average rent in the La Jolla/University City submarket is $3.3K, with a vacancy rate of 4%. Across the San Diego metro area, average rents stood at $2.8K in Q4.
During the pandemic, San Diego rents surged from $2.2K in 1Q21 to nearly $2.9K in 3Q23. Though rents have plateaued near record highs, affordability remains a significant issue for students and local renters alike.
