If your child got into SDSU or UC San Diego, congratulations are in order. So is a conversation you probably were not expecting to have quite so soon.

Housing near both campuses is expensive. Not the usual college town expensive. San Diego expensive. And once parents start doing the math on four years of rent, the question tends to surface pretty naturally: is there a smarter way to handle this?

For some families the answer is yes. And it is worth understanding why before you write another check to a landlord.

What Rent Near Campus Actually Looks Like Right Now

Near SDSU, a private room in a shared apartment currently runs between $1,100 and $1,600 per month. Near UC San Diego in La Jolla, private rooms range from $1,300 to $1,600 and studios start above $2,000. If your student wants their own one-bedroom apartment near either campus, plan for closer to $2,500 to $3,000 per month based on current market data.

Run those numbers across four years and you are looking at somewhere between $52,000 and $90,000 in rent depending on the situation. That money is gone at the end of it. There is no equity, no asset, and nothing to show for it when graduation day comes.

That is the number that tends to get parents thinking.

The Case for Buying Instead

Condos near SDSU have recently sold with a median price of around $449,000, with some options coming in below that depending on size and condition. That is a more reachable entry point compared to the broader San Diego market where the median home price was around $950,000 in early 2026.

The math starts to look different when you compare a mortgage payment on a $449,000 condo to four years of rent. Particularly when you factor in that at the end of those four years you still own something.

San Diego real estate has shown appreciation over time and the median home price in the county rose 5.8 percent year over year through early 2026. That said, past appreciation does not guarantee future results and real estate values can go up or down depending on market conditions.

The Roommate Strategy

Most parents who pursue this approach do not pay the full carrying cost themselves. The student lives in one room and friends rent the other rooms. Student housing occupancy across the country is projected to hit 95.1 percent for the 2025 to 2026 academic year, which reflects strong and consistent demand for rooms near campus.

It is worth being realistic about the numbers here. A $449,000 condo at current rates carries a monthly payment of roughly $2,700 to $3,000 including taxes and insurance depending on the down payment. Two roommates paying between $1,100 and $1,400 each brings in approximately $2,200 to $2,800 per month. In a favorable scenario that covers most of the carrying cost. In a more conservative scenario there is still a gap the parent needs to cover. The point is not that the property pays for itself automatically but that roommate income can make the monthly burden more manageable while the family builds equity rather than paying rent with no return.

This approach is sometimes called house hacking and multiple financial planners and real estate professionals describe it as a practical strategy for families with a college-age student in a high-demand rental market. It is not without risk and the right fit depends heavily on the individual family's financial situation.

The Mortgage Side of It

Parents who already own a home in another state sometimes worry that financing a second property in California is complicated. It does not have to be.

There is a loan structure sometimes called the Kiddie Condo loan where parents co-sign or co-borrow on a mortgage with their child. The parents' income and credit support the qualification while the student begins building credit history and financial responsibility as a co-owner. It is a legitimate loan product designed for this kind of situation though terms and eligibility vary by lender.

For parents who want to purchase as a second home or investment property rather than co-borrowing with the student, those financing options exist as well. The right structure depends on the specific financial picture and what the family plans to do with the property after graduation. Speaking with a licensed mortgage professional is the best way to understand what options are available.

What Happens After Graduation

This is where the conversation gets interesting for a lot of families.

Some parents sell after their student graduates and walk away with whatever equity has built up during that period. Others keep the property as a rental and continue generating income from it. Some students who land careers in San Diego after graduating end up purchasing the property from their parents over time.

On the retention side, data from a National Bureau of Economic Research working paper found that about 60 percent of SDSU graduates stay in the San Diego region after finishing their degree. That is a meaningful number and worth factoring in if your student is likely to build their career here.

Is It Right for Every Family?

No, and it is worth being straightforward about that.

This approach works best for families who can qualify for a second mortgage without overextending, who are prepared to manage a property or hire someone to do so, and who understand the responsibilities that come with being a landlord. San Diego is not a cheap market to buy into and carrying costs are real. Market conditions can also change in ways that affect both property values and rental demand.

But for the right family, particularly one with a student heading to SDSU or UC San Diego in a city where rent is high and property ownership has historically been a reasonable long term decision, the conversation is worth having before the first rent check goes out.

4 Well Known Universities People Can Consider in San Diego County

  1. UC San Diego is located in La Jolla and is one of the top public research universities in the country, known for its programs in biomedical sciences, engineering, computer science, and oceanography. It is a major driver of the region's life sciences and technology economy.
  2. San Diego State University is one of the largest campuses in the California State University system and is well regarded for its programs in business, engineering, public health, nursing, and the arts. It draws students from across California and out of state.
  3. University of San Diego is a private Catholic university in Linda Vista known for its law school, nursing program, and business offerings, with a strong reputation for smaller class sizes and a highly regarded campus.
  4. Point Loma Nazarene University is a smaller private Christian university in Point Loma known for its nursing, education, and liberal arts programs, and offers a more intimate academic environment than the larger research institutions.

Ready to Talk Through the Numbers?

If your child is heading to SDSU or UC San Diego and you want to understand whether buying makes sense for your situation, a straightforward conversation is a good place to start. Every family's financial picture is different and the right answer depends on your goals, your timeline, and what you are trying to accomplish. Reach out anytime. No pressure, no obligation. Call Alexander today at 619-339-7334 to discuss your options.

Sources

  • RentCafe and Zumper, San Diego Rental Market Data, 2026
  • findmyplace.co, San Diego Student Housing Costs Guide, 2026
  • San Diego Condo Mania, SDSU Area Condo Sales Data, 2026
  • Norada Real Estate, San Diego Housing Market Report, April 2026
  • Redfin, San Diego Housing Market Data, March 2026
  • National Bureau of Economic Research, College Graduate Retention Study
  • Presidential Bank Mortgage, Kiddie Condo Loan Overview
  • rentbottomline.com, Student Housing Occupancy Data, 2025 to 2026

Disclaimer

This post is for informational purposes only and does not constitute financial, investment, or real estate advice. Data and program details change over time, so please verify any information independently before making decisions.

FAQs

Is buying near SDSU or UC San Diego worth it? For the right family yes. Four years of rent near either campus can exceed $90,000 with nothing to show for it. Buying builds equity over that same period and keeps options open after graduation.

What does rent near campus actually cost? Private rooms near SDSU run $1,100 to $1,600 per month. Near UC San Diego expect $1,300 to $1,600 for a room and above $2,000 for a studio.

What is the Kiddie Condo loan? An industry nickname for an FHA loan where a parent co-borrows with their college age child. The student lives there as the primary occupant which means better terms and a lower down payment than a straight investment property loan.

What happens to the property after graduation? Most families sell and capture equity, keep it as a rental, or transfer it to the student. Around 60 percent of SDSU graduates stay in San Diego which makes those options realistic.