San Diego’s Housing Crunch: Are We Building Fast Enough?

In his recent State of the City address, Mayor Todd Gloria announced that San Diego has nearly doubled the number of housing permits issued in recent years compared to the past two decades [1]. With cranes dotting the skyline from Mission Valley to Barrio Logan, it’s clear that construction is booming. But as a real estate broker on the front lines of San Diego’s housing market, the crucial question remains: is it enough to solve our affordability crisis?

A Tale of Two Housing Markets

The recent surge in housing permits is a significant step in the right direction. The city’s efforts to fast-track building through programs like Affordable Housing Permit Now and Bridge to Home are yielding visible results. In 2024 alone, the City of San Diego permitted 8,782 new homes, a near-record number that reflects a strong commitment to increasing housing supply [2].

However, a closer look at the data reveals a more complex picture. While overall permit numbers are up, the production of affordable housing has actually declined. In 2024, only 1,062 affordable homes were permitted, a drop of more than 50% compared to the previous year [3]. This trend is concerning, as it suggests that much of the new housing being built is not accessible to the low- and middle-income families who need it most.

The Enduring Appeal of the Single-Family Home

Another critical factor is the type of housing being built. While multi-family developments are essential for increasing density, the demand for single-family homes remains incredibly strong. As local realtor Spencer Soto noted in the 10News article, “Definitely single-family homes, you know, that’s the best investment, that’s what most people are looking for” [1]. For many San Diegans, the dream of a home with a backyard is still very much alive.

This preference for single-family homes creates a challenge for developers and city planners. How can we meet the demand for this type of housing while also addressing the need for greater density and affordability? It’s a delicate balancing act that requires a multi-faceted approach.

What This Means for You

•For Buyers: The current market is a mixed bag. While more housing is coming online, much of it is in the luxury and market-rate categories. If you’re looking for a single-family home, be prepared for stiff competition. However, the increase in condo and apartment inventory may create opportunities for first-time buyers and those looking for a more urban lifestyle.

•For Sellers: The strong demand for single-family homes means that it’s still a great time to sell. However, with more new construction on the horizon, it’s more important than ever to price your home competitively and ensure it’s in top condition to attract buyers.

The Road Ahead

San Diego has made commendable progress in increasing its housing supply, but the road ahead is long. To truly address our housing crisis, we need a sustained commitment to building a wide range of housing types at all income levels. Initiatives like the mayor’s proposed middle-class housing plan and the ambitious Midway Rising project are promising steps, but they are just the beginning.

As a community, we must continue to support innovative housing solutions and advocate for policies that make it easier and more affordable to build in San Diego. Only then can we hope to create a future where everyone who wants to call this city home can afford to do so.

Thinking about buying or selling in this dynamic market? Contact our team today for expert guidance and a personalized strategy to achieve your real estate goals.

Reference:

Based on “Mayor says city nearly doubled housing permits, builders say it's not enough,” read the full article here: https://www.10news.com/news/local-news/mayor-says-san-diego-nearly-doubled-housing-permits-but-builders-say-its-not-enough

Sources:

[1]: # "10News, “Mayor says city nearly doubled housing permits, builders say it's not enough,” January 17, 2026."

[2]: # "City of San Diego, “2025 Annual Report on Homes,” September 2025."

[3]: # "City of San Diego, “Additional Analysis of 2025 Annual Report on Homes,” November 4, 2025."