San Diego issued more permits for homes last year than it has in decades, nearly doubling its total from a year earlier, per figures that Mayor Todd Gloria is set to release today.
Why it matters: The surge may indicate that years of city attempts to reform housing policy are showing results — but even 2023’s big total falls far short of the city’s annual need, according to its state-mandated housing blueprint.
- Housing affordability in San Diego is among the lowest in the country, and housing costs rank among residents’ top concerns in public polling.
By the numbers: The city issued permits for 9,691 homes last year, per the mayor’s office.
- That’s more than any year since at least 2005, according to San Diego’s official tally, and nearly double the 5,189 housing permits it averaged over the previous five years.
- When compared to historic federal data from the Department of Housing and Urban Development, it’s more than any year since 1988 and a greater total than in 36 of the past 43 years.
Yes, but: According to the state, San Diego needs roughly 13,500 new homes per year — or 108,036 between 2021 and 2029.
Zoom in: About 18% of the city’s 2023 permits were for “granny flats,” or accessory dwelling units, where city officials have tried to lead on policy reforms, spurring backlash from some residents.
- Slightly more than 10% came from the city’s “complete communities” program, which lets developers build more homes if they reserve some for residents with low and moderate income.
Zoom out: The San Diego region bucked California’s downward permitting trend. The entire metro area issued 11,468 permits in 2023, 20% more than in 2022, according to Census data compiled by Point2.
- California, meanwhile, issued 111,221 permits in 2023, down about 5% from a year earlier.
- Point2 found permitting dropped 32% and 5% in the San Francisco and Los Angeles metro areas, respectively, from 2022 to 2023.
Fine print: HUD’s preliminary 2023 data for San Diego is much lower than the city’s total, coming in roughly in line with recent years — not above them.
- “We have a raised eyebrow, but we would be glad if it’s true,” Lori Holt Pfeiler, president and CEO of the San Diego Building Industry Association, told Axios.
What we’re watching: Pfeiler harshly criticized San Diego County officials this week for their record on housing production, but said the city has been more receptive.
- “Basically, the county is dead to us,” she said.
- But, she added, “There has been an opportunity presented in the city of San Diego.”
