The Save Our Falmouth Group organised the event in response to the latest planning applications for large scale student accommodation.
Protestors say the demand on housing is already high and any more students will have a detrimental effect on the town.
A Falmouth University spokesperson said there are two public consultation events taking place this month.

The discovery of the body in Northampton is being linked to the disappearance of Adeyemi Olugbuyi, 32, known as "Big Man", in September 2013.
Nigerian Mr Olugbuyi, who was last seen in North Holme Court, Thorplands, had been involved in an "altercation" in the area.
Police said officers were treating the death as murder.
Known as "Baz" or "Big Man", he is believed to have been involved in an altercation in the area just after 08:00 BST on 13 September.
Click here for more on this story and other news from Northamptonshire
Since that time, he has not been in any contact with family or friends.
A police spokesman said: "Investigators believe the body is likely to have been there for some considerable amount of time, possibly months or years."
Police said formal identification had yet to take place.
Officers have been searching green areas around Billing Brook Road, where the body was found, and were using a dog unit at the scene.

The staff were hired for the launch of the 24-hour Underground service which was was originally scheduled for September.
It has been delayed until 2016 due to a dispute over pay and conditions.
TfL said it is "operationally ready" for the Night Tube and the extra staff are now working across the network.
More on this story and news from London
The planned September start date was pushed back until 2016, because TfL and unions were unable to reach an agreement on staffing arrangements.
Unions took industrial action during the summer having called for increased pay and a limit on how many all-night shifts their members would be asked to do.
Talks at the conciliatory service Acas are due to resume this week.
TfL said it is not wasting money as the staff are fully employed.
It added 307 are in part-time station positions and the rest work in engineering or service control, adding that some of these staff will be used to replace those that leave or retire.
But Val Shawcross, Labour's transport spokeswoman on the London Assembly, said: "It's a huge amount of money that must be blowing their plans.
"They've obviously pressed the button too soon in terms of putting them on the payroll."
A demonstration has been held over the rise in the number of students at Falmouth University in Cornwall.
[NEXT_CONCEPT]
The body of a man found in a hedge by litter pickers might have lain undetected for years, police have said.
[NEXT_CONCEPT]
Transport for London (TfL) has recruited 500 staff for the Night Tube at a cost of £1.5m a month, even though the new service is not yet operating.