CSU San Marcos developing $126 million affordable student housing project

SAN MARCOS, Calif. (FOX 5/KUSI) — California State Treasurer Fiona Ma visited Cal State University San Marcos on Monday to see firsthand how the university is tackling the region’s affordable housing crisis.

With the help of a $91 million state grant and additional revenue bonds, the campus is transforming what used to be Parking Lot O into a new seven-story residence hall and dining facility part of a larger $126 million effort to expand on-campus housing.

“We are here looking at this amazing 555 units of student housing,” Ma said during her tour of the construction site.

The project will add 555 new beds and a dining space by August 2026, focusing on sustainability and affordability. According to the university, two-thirds of the new units will be designated as affordable housing.

CSUSM President Ellen Neufeldt said the project is a critical step toward supporting students who might otherwise struggle to stay enrolled.

“What’s going to be most important to them is a place to put their head at night,” Neufeldt said. “To make sure that we have what they need, that they have what they deserve makes me feel incredible.”

The need for affordable options is especially pressing at Cal State San Marcos, where more than half of students come from underserved communities or are the first in their families to attend college.

For students like Sarah Flores, the project could make all the difference.

“I was possibly going to have to take a semester off just to make enough money to live here,” Flores said. “Seeing this new housing, and having two-thirds of it be affordable, really makes all the difference.”

Ma’s visit is part of a broader statewide effort to increase access to student and faculty housing through targeted investment in public higher education.

“This should be a priority,” Ma said. “We need to allocate general fund dollars so we can continue to build student and faculty housing across California.”

University leaders say the project isn’t just about creating more beds it’s about building community, giving students a place to live, learn, and thrive together on campus.