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San Diego , CA

Monthly Housing Development Update | May 2023

General statistics, market trends and outlook for housing development in San Diego, CA

City Housing Update for May 2023

Current Trends:

During this past month of April, the median rental price for a single family home in San Diego was $2,780 and median sale price for a single family home in the city was $622,300. There were approximately 3,838 homes listed for sale in the city at the end of April, compared with 3,838 in March. During the last month, homes sold within 34 days on the market and received 3 offers per sale on average.

City Housing Supply:

As of the end of 2017, the total count of existing housing units in the city was 541,140. Single family housing units make up the majority 53.21% of San Diego's housing units, 287,927 units total. Multifamily units make up 45 percent, or approximately 246,462. As of last year, the average housing density (people per household) was 2.68, compared with the state average of 2.97. At the end of the period, about 31,924 of housing units in the city were unoccupied, suggesting a vacancy rate of 0 percent.

Regulations & Outlook:

The City has not yet finalized updates to it's residential zoning code that fully comply with State Laws SB 1069 and AB 2299 which allow for Accessory Dwelling Units (ADUs) to be developed on most single family lots. More commonly referred to as “Granny Flats” and “In-Law Units”, in San Diego as many as 169,876 homes may now be eligible to add some form of second dwelling unit. These laws are intended by The State to boost opportunities for housing production in cities in an effort to address the growing housing deficits local communities face accross The State. Typically secondary units are constructed by homeowners in backyards, converted garages and basements of single family residences. These new regulations could now allow individual homeowners to play a significant role to increase housing production in San Diego over the coming years. Consider for example, if just one percent of eligible homeowners in San Diego built an ADU each year, it would contribute an additional 8,493 units to the city's housing stock over the next five years and create thousands of new local construction jobs.

Local News & Policy:

At this time, statewide standards will superseed any local residential zoning requirements for ADUs that are non-compliant with the state's minimum set of requirements. The current development standards for ADUs in San Diego, or any other CA city, can be found at the city zoning page link and search below. Recently More information on the latest local policies and requirements for ADUs will be available as they are passed. Check back each month for the latest changes in San Diego.

Get Involved:

For homeowners and local developers who are interested in getting involved in the ADU movement locally in San Diego, use Housable to get insights about the ADU housing development potential of specific properties. Housable provides zoning, permitting, estimation and design tools, many of them free of charge, to help homeowners at any step plan, permit and build their ADU projects. Use property design and calculation tools any time, get low cost insights about the ADU potetnial of your property and connect with local professionals who can help with the process when you're ready to get started. Stay up to date with the latest local trends in housing production and join the ADU movement to create more housing in San Diego, one garage, basement, or backyard at a time.

Exerpts From City Housing Reports

Household size influences the demand for the mix of multifamily and single-family homes, as well as the size of the units. Single-family detached houses account for the largest percent of all housing types within the City of San Diego. In 1970, single-family units composed 65 percent of all housing units. By 1991, single-family dwellings within the City had declined to 56.8 percent of the total housing stock. In 2000, single-family accounted for 56.4 percent of all housing units within the City In 2010, single family housing units were was accounted for 54.7 percent, while multifamily units comprised to 44 percent as shown in Table 11. The remaining 1.3 percent was mobile homes or other types of housing units. From 2000 to 2010, multifamily housing with 20 or more units (apartments, condominiums) grew by 24 percent.

Table 15 provides overpayment detail by income level, household type, and severity. Housholds spending more than 30 percent of their income on housing costs are generally considered to be overpaying or cost burdened. Severe overpaying occurs when households pay 50 percent or more of their gross income for housing. As Table 15 shows, a higher percentage of poorer households tend to overpay.

In 2000, the City had 469,756 total housing units and 450,691 total households. By 2010, total housing units increased by approximately 11 percent to 520,374 housing units, while total households increased by 7 percent to 483,092 households. By 2030, the City's total housing units are forecasted to increase to 629,694, a 21 percent increase from 2010. This data is shown in Table 21.

During 2008-2010, the largest percentage (54.7 percent) of total housing units in the City of San Diego was single-family detached units as shown in Table 22. Approximately three percent were duplexes, 41 percent were multi-family developments, and 4.5 percent were mobile home or others. From 2000 to 2010, there was a large increase in multi-family development, with almost 24 percent increase for 20 or more unit developments and just over a 12 percent increase for 5-9 unit structures. Single-family units are forecasted to increase by just five percent between 2010 and 2030, while forecasting multi-family units to increase by 51 percent.

The ratio of owner-occupied units vs. rental units is an indicator of stability. From 2008 to 2010, 48.8 percent of San Diego's housing stock was owner-occupied, while 51.2 percent was renter-occupied. Renter-occupied households are growing faster than owner occupied, with a 7.4 percent increase from 2000 compared to a 4.5 percent increase of the owner households. Historically, the rate of homeownership in San Diego has been lower than that of the state and the nation. Among the reasons for San Diego's lower homeownership rates are: (1) San Diego's high proportion of transient military personnel, (2) the wide disparity between San Diego's income levels and the high cost of local housing, and (3) the lack of land in the City and region to accommodate low-density forms of housing.

Provide at least 700 additional units for moderate-income households, 3.600 additional units for low- income households, 3,000 additional units of housing for very low-income households and 3,000 additional units for extremely low-income households by December 31, 2020.

The City has identified potential housing sites on vacant developable land that is designated for and capable of providing new housing units. Table 47 includes vacant sites zoned for residential uses that could provide 5,325 future housing units.

The City of San Diego owns 36 housing units in San Pasqual Valley. The City, through the Water Utilities Department, provides funds for rehabilitation where needed. Most of the units are in good condition. Recently, three units were demolished and replaced with three new units.

The implementation of the Inclusionary Housing Program is ongoing. A total of 1340 inclusionary units have been constructed between 2006 and 2010. The City has collected over $3.9 million in in-lieu fees during in 2009 and $1.348 million in-lieu fees were collected in 2010. Over $3.929 million in-lieu fees were collected in 2011 with 17 units constructed onsite.

Current Market Stats May 2023

Median Sales Price $622,300.00

Median Rental Price $2,779.00 Based on 840 sqft unit

Total Homes on Market 3838

Average Days on Market 34

Average Offers per Sale 3

City Housing Stock 2017

Total Housing Units 541140

Single-Family Units 287927

Other Type Units 6751

Unit Vacancy Rate 0.059

Annual Units Produced (2017) 5961

Go to San Diego ADU Zoning Page

General City Info San Diego, CA

City Population 1,419,845

City Area 325.19 sq. mi.

We have our final inspection TODAY and do expect it will go well. We’ve been lucky to have a nice inspector. I’ll send you more pics this weekend!

Fiona K. in Bell Canyon, CA

My experience with Housable was exceptional. The team was extremely helpful and responsive. I am very satisfied and happy to have used these services. As a homeowner I do not know the construction lingo or process but the Housable team very kind and helpful and patient with me. My expectations were exceeded. Thank you for everything.

Monica H. in Oakland, CA

City & State Housing News

San Diego, CA accessory dwelling units Archives - Voice of San Diego 07/04/2017

San Diego, CA Keep Granny Flats Reserved for Much-Needed Housing Voice of San Diego 27/07/2017

San Diego, CA New Granny Flat Laws Are a Step, But Not a Leap in the Right ... 07/08/2017

San Diego, CA Granny Flats - San Diego Reader 25/05/2011

San Diego, CA How they voted, July 2 The San Diego Union-Tribune 02/07/2017

Go to San Diego ADU Zoning Page

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