SAN DIEGO—A mix of development cost, rental unaffordability and a large supply of outdated housing options that don't serve the universities' student-retention goals is creating problems for the student-housing sector here, panelists at a recent ULI breakfast event said. According to information provided exclusively to GlobeSt.com, speakers at the ULI San Diego-Tijuana District Council breakfast event this month agreed that student housing—the second-largest college expense for most students after tuition in San Diego and throughout much of the nation—is in crisis.

Moderated by Jeff Graham, executive director of real estate at University of California at San Diego, the event was organized by ULI's Young Leaders and entitled “Trends in Student Housing.” Panelists included Mark Cunningham, assistant vice chancellor for housing-dining-hospitality services at UCSD; Gary Levitt, founder and principal at Sea Breeze Properties; Fred Pierce, president and CEO of Pierce Education Properties; and Robert Shulz, university architect and associate VP of real estate, planning and development at San Diego State University.

The student-housing crisis, according to the panelists, is a mix of development cost and rental affordability, as well as a large supply of outdated housing options that don't serve the universities' student retention goals. The panelists concurred that as the percentage of high-school graduates continues to increase and international student enrollment at universities remains strong, the crisis will only grow, absent fast action and creative solutions.