Opinion: San Diego needs to build all types of housing — not just apartments
A building inspector at a construction site in San Diego. (File photo from city video) The dream of home ownership is at risk in San Diego. If we fail to build enough single-family homes and condominiums, owning a home will slip out of reach for countless San Diegans. Without action, our city is on the verge of becoming a “city of renters,” a place where families have no clear path to ownership and long-term stability. The time to prioritize building more for-sale housing is now, before the dream of home ownership becomes nothing more than that — a dream. San Diego is facing a housing imbalance. Apartment construction is booming, while new single-family homes and condominiums lag far behind. For every new single-family home constructed, approximately seven to nine apartment units are built. This mismatch threatens home ownership opportunities and neighborhood stability. To create a healthy housing market, San Diego must encourage building roughly equal amounts of single-family homes, condos, and apartments. A major factor depressing condo construction is Senate Bill 800, the “Right to Repair Act.” SB 800 was designed to protect homeowners by establishing construction standards and giving them a pre-litigation process to get defects repaired. But it also gives homeowner associations up to ten years to sue developers for latent construction defects in common areas. This decade-long exposure of every condo project drives up insurance premiums and legal reserves. Rental apartments, which are not governed by homeowners’ associations and fall under general statutes, carry significantly less litigation risk. As a result, developers often favor building apartments over condominiums because apartments are less expensive to construct and present fewer financial and legal risks to developers, investors and lenders. Single-family home construction faces a different set of barriers: excessive permitting fees and long permitting timelines. San Diego’s development fees, including impact fees, utility capacity charges, and permitting costs can consume 30% to 50% of total project costs, making new single-family homes unaffordable for most San Diegans before construction even begins. These costs are compounded by a slow, unpredictable permitting process. It can take six months to a year to secure approval for a single-family home, and even longer for subdivisions. Every month of delay increases financing costs, and risks discouraging smaller builders and limiting the supply of new for-sale homes. This imbalance matters. Apartments serve an essential purpose, but a city dominated by rentals leaves residents with fewer pathways to home ownership and long-term generational wealth. Condos are often the first rung on the ownership ladder, and single-family homes allow families to grow without leaving the region. A balanced mix of housing types creates resilient neighborhoods, supports schools and local businesses, and offers choices for every stage of life. San Diego’s elected officials can restore balance by lobbying Sacramento to reform condo liability laws to reduce litigation incentives, lowering and streamlining development fees, and enforcing permitting timelines to reduce financing costs. By leveling the playing field, the city can attract investment in single-family and condo projects, not just apartments. San Diego’s housing policy should expand home ownership opportunities, not limit them and that means building ownership housing at the same pace as rentals. San Diego’s current approach to solving the housing shortage relies heavily on filling our neighborhoods with massive multi-story apartment complexes. But this strategy risks destroying the very character and charm that make our communities unique. Residents across the city have made it clear that they do not want six- and seven-story buildings looming over their homes. It’s time for our elected leaders to pause and truly listen to the people they represent. We need a smarter plan that balances growth with neighborhood preservation — one that provides housing solutions without sacrificing the quality of life for those who already call these neighborhoods home. Mark Powell is a licensed California real estate broker and the former vice president for the San Diego Association of Realtors and a former San Diego County Board of Education member.
