Student rent growth lags behind market rates
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Student rents grew slower than market-rate rents on average in San Diego over the past five years, according to Moody's data shared with Axios.
Why it matters: Living on or close to campus is one way local students can save on the already-high cost of college, and the news comes as several area universities have big plans for expanding student housing.
By the numbers: Average San Diego State University student rents grew by 21.6% from 2020 to 2025, while average market-rate rents grew 37.2%.
- The average rent for College Area was $2,548 in August, per RentCafe.
Zoom in: As SDSU expands campus housing with new high-rises to keep up with demand, the city is planning for more development in the surrounding neighborhoods.
- The latest draft of the city's College Area Community Plan could make way for up to 18,000 new homes over the next 30 years. It proposes zoning changes to increase density near the university, UC San Diego's East Campus Medical Center and along Montezuma Road, College Avenue and El Cajon Boulevard, KPBS reported last month.
- The updated plan, which is still taking public feedback, goes to the Parks and Rec board this week, and is scheduled to be heard by City Council for approval in December.
Meanwhile, UCSD's largest-ever housing complex opened with the new semester this week, featuring ocean views and rents that are at least 20% below market value, the Union-Tribune reported.
- The new $673 million residential neighborhood brings the university's housing capacity to 24,500 students, which ties UCLA for No. 1 nationally. Among its amenities: a glass-blowing facility and gaming lounge with pool tables and shuffleboard.
- The university is also considering building a 30- to 40-story dorm as it plans for major enrollment growth, per the U-T.
The big picture: San Diego reflects national trends when it comes to student rents.
- Nationwide, rent growth for market-rate apartments has been outpacing that of student housing, says Ricardo Rosas, Moody's associate data scientist.
- But over the past five years, roughly 24% of 140 colleges and universities analyzed saw student rents grow faster than market-rate rents.
Between the lines: When rents rise in a metro area, student housing tends to follow suit, research suggests.
- Strong demand to live near campus and luxury apartments can also keep student rents high.
- "While multifamily rents continue to command higher rates, the rapid growth in student housing rents is creating a mounting affordability crisis for students," according to a recent Moody's analysis.