CREVisionSD
San Diego State University recently announced plans for a $1 billion student housing development called “Peninsula,” marking the largest residential project in the school’s history. The development aims to ease San Diego’s ongoing student housing shortage and help students struggling with high rent near campus.
Rents Continue to Climb
San Diego consistently ranks among the most expensive rental markets in the country. The average rent across the metro area is projected to hit $2,913/month in 2025 (M&M Investment Forecast). In nearby submarkets like La Jolla/University City, rents are even higher, averaging $3,279/month as of Q4 2024 (CBRE). For students, that makes off-campus housing not just hard to find, but often out of reach.
Project Timeline and Development Details
Construction is scheduled to begin in May 2025, with full completion expected by December 2030. The Peninsula will feature seven new apartment towers—five 13-story towers and one 9-story building—built on an 11-acre site near the northwest side of campus. Another nine-story residence hall will be developed separately on a 1.1 acre site. In total, the project will house 5,220 students, bringing SDSU’s total housing capacity to 13,000. The development will roll out in phases, starting with a nine-story residential building.
Safety Measures Built In
Given that the development lies in a high-risk fire zone, safety is a top priority. The buildings will feature Type I-B fire-resistant construction (a durable concrete and steel structure that slows the spread of fire) and a 100-foot fire buffer zone (a cleared perimeter that helps prevent wildfires from reaching the buildings) for added protection.
Looking Ahead
The Peninsula represents a major step toward tackling San Diego's student housing crisis. With multifamily vacancy hovering around 4% and average rents pushing $3,000/month, finding affordable housing—especially for students—has become increasingly difficult. SDSU’s investment shows a strong commitment to building long-term, sustainable solutions for its students.
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