San Diego"s housing progress in 2024 amid rising home values

In 2023, San Diego issued permits for 9,700 new homes, significantly surpassing the average of 4,700 homes permitted annually from 2014 to 2022. Despite this progress, the city fell short of the ambitious state target of 16,000 new homes per year, which is necessary to address the ongoing housing crisis. The average home value in San Diego reached $1.03 million in 2024, reflecting a 10.3% increase from the previous year, highlighting the urgent need for more affordable housing options. The city has made efforts to increase housing capacity, with community plan updates allowing for 46,200 new homes. However, the majority of the new permits issued in 2023 were for one-bedroom or studio apartments, with only a small percentage allocated for larger family homes. To meet the Regional Housing Needs Assessment by 2029, San Diego must permit an additional 82,344 homes. The Density Bonus Program played a crucial role in permitting 2,157 new affordable homes in 2023, contributing to the overall housing stock. Between 2021 and 2023, over 6,100 new homes were permitted through this program, with a significant portion designated as affordable. San Ysidro and downtown San Diego were the leading areas for affordable home permits, indicating a focused effort to address housing needs in these communities. While the city is actively working to remove barriers to housing development, the current pace of permitting is insufficient to meet state requirements. Continued efforts are necessary to ensure that San Diego can provide adequate housing for its growing population and address the rising home values that are impacting affordability.