UC San Diego Plans $2B Student Housing Village

UC San Diego is planning to build a $2B student housing village on the eastern edge of its main campus, a project that would be three times bigger than any market-rate residential complex in the city.

Chancellor Pradeep Khosla is asking the University of California for approval to build up to six towers encompassing about 6,000 beds, the largest and most expensive housing plan presented to the Board of Regents in the past two decades, the San Diego Union-Tribune reported.

UC San Diego’s proposal would double down on an aggressive housing expansion that is in the midst of putting up six buildings in the 16-22 story range encompassing a total of more than 9,500 beds, including a 2,400-bed community in the River Walk section of the campus.

UC San Diego will have the capacity this fall to provide 22,000 students with housing, moving it to second place nationwide behind only UCLA-in university-owned campus housing.

“I want to be able to provide a four-year [housing] guarantee to all my undergraduates at 20% below market,” Khosla said, the San Diego Union-Tribune reported, referring to a program at UCLA that guarantees two years of housing and aims to keep rents at levels at least 20% below market rates.

The proposed expansion, known as the Pepper Canyon East District, would build a series of towers on a 20-acre tract located between the university’s Blue Line Trolley station and Interstate 5. The plans include a 300-room hotel.

If the regents approve the Pepper Canyon project, construction could begin on the first phase in 2026, with 2,000 new beds available in 2029. The dorms under construction at UCSD feature amenities including large dining halls and fitness areas.

Enrollment at UCSD, which has grown by 13,000 over the past decade, is projected to rise by 7,600 during the next 10 to 15 years to a total enrollment of more than 50,000. About 2,800 students currently are on waiting lists for housing.

The average rent in San Diego County is $2,460 a month, according to CoStar data. In the La Jolla and University City area, rents average more than $3,200 and the vacancy rate is below 5%.

Despite slowing momentum over the past two years, U.S. student housing pre-leasing continues to increase at a normal pace for the Fall 2024 term and remains above pre-pandemic trends, GlobeSt. reported.

According to RealPage’s June 2024 student housing update, 84.5% of beds at the 175 universities it tracks have been leased for Fall 2024. That compares with 85.8% leased at the same time last year and 86.2% two years ago.