San Diego permits more homes, but housing supply still falls short of demand

Mayor Todd Gloria Monday highlighted progress in permitting new housing as San Diego released its 2025 Annual Report on Homes, but the city has yet to keep pace with demand.

Last year, the city permitted 8,782 new homes — the second-highest total in the last decade — with many near transit stations and walkable amenities.

“San Diego is making real progress in tackling our housing crisis. We’re not just building more homes, but building them in the right places — near jobs, schools, transit and opportunity,” Gloria said. “And as we look ahead, my administration will continue to push for more affordable and attainable homeownership opportunities so that working families, seniors, veterans and first-time buyers can put down roots and thrive in San Diego.”

City officials said San Diego has permitted an average of 9,200 homes over the past two years, a more than 40% increase compared with the start of the current state housing cycle. Most new homes — 97% of income-restricted units and 85% of all units — were built in the city’s most transit-accessible areas, supporting the city’s Climate Action Plan.

San Diego permitted more than 2,285 accessory dwelling units last year, and has permitted a total of 31,458 homes from 2021-2024, with Downtown, Uptown, North Park, Mira Mesa and Navajo leading all neighborhoods, according to the report.

The city also helped finance 23 housing projects with a total of 2,418 affordable homes through its Bridge to Home program since Gloria launched it in 2021. The program provides gap financing to developers for affordable housing projects.

Despite these gains, San Diego remains far from meeting the demand established in the city’s Housing Element. The state-required plan calls for roughly 108,000 new homes over eight years, about 13,500 per year, showing the recent surge falls short of city goals.

A University of San Diego Nonprofit Institute report found that only 1 in 10 county residents can afford a median-priced home, more than half of renters are housing-burdened and nearly two-thirds of residents have considered leaving the region due to high costs.

“Every San Diegan deserves a stable, affordable place to call home,” said City Councilman Sean Elo-Rivera. “The progress highlighted in this report shows what’s possible when we prioritize people over profits and make bold, pro-housing decisions.

“In District 9, we’ve seen firsthand how new affordable homes can bring stability and hope to longtime residents. But we’re not done yet. We must keep pushing for more homes in high-opportunity areas and ensure that longtime residents and working families aren’t pushed out of the neighborhoods they helped build.”

City News Service contributed to this article.