OH MY GOODNESS WILL HOW MUCH I've BEEN BREAKING MY HEAD OVER HOW TO FIT 662.000 STUDENTS IN THE ACADEMY
However, I hope you don't mind that I took the liberty to change the number of them who reside in the city

Here is how I did it: using bullshit approximating math
About 1/6 of the students do not live in academy city and arrive from other islands or places daily by aquatic or aerial means, 129.000

Of the ones that live in the city, there are 217 that live in luxurious big houses
around 100.000 live alone
162.300 share flat with other student
108.300 share flat with other two students
162.300 share flat with other three students

total 533.000 students living in Academy city and 237.825 apartments with students living in them. It is no wonder why being a landlord or landlady is so common and profitable in this city.

A coast city of a population of 750.000 with moderate weather? I can't think of one better example than [url=http://upload.wikimedia.org/wikipedia/commons/e/ed/Palermo02_flickr.jpg]Palermo[/url], (although I've just seen that Palermo is 630.000, but anyway, I can fit 100.000 people there) so it can be used to base our city

I'll make a map later

@Grey Have you though of giving statistics to the ESPers?