SAN DIEGO (KGTV) – 1,894 new homes were built in 2024 right here in Downtown San Diego.
However, only 174 of them are affordable, income-restricted housing.
"Not only have we had new housing come online, there's more under construction,” City Councilmember Stephen Whitburn, who represents Downtown San Diego, said.
"There is a significant amount of new affordable housing that is on the way."
Whitburn tells me one project in East Village will bring 270 affordable housing units and a Cortez Hill project will bring another 88.
"And we need to continue to build more affordable housing. To that end, we are encouraging the state and our federal partners to make more funding available so that those can be financed,” Whitburn said.
If you look at the websites for some of the completed 2024 projects, there are floor plans that show studios are available for a little more than $2,400 a month for rent at market rate. The average rate for a studio in San Diego according to Rent.com is $2,356 per month.
"Due to all of the housing being built, due to the supply of housing, that is leveling off the increases in rents,” Whitburn said. “A lot of it is still expensive but, at least the rent isn't going up as much as it was."
ABC 10news also spoke with the CEO and President of the Building Industry Association of San Diego County Lori Pfeiler. She said building up the supply and cutting red tape are the answer to keeping rents low.
"We also have to fundamentally deal with 40 percent of the cost of the home is due to the regulatory environment,” Pfeiler said. “And, if we do not fix that, we will never be able to lower the cost to build a home. We need to lower the cost to build a home so that we can get more product out to the public and families that need to be able to buy a home or rent a place."
Whitburn also said the supply is key and that adding both market rate and affordable housing is needed. He told ABC 10News work’s being done to help create more of both.
"We are working with developers to try to streamline the permitting process, make it faster for them to get projects built and to free up land where more of these projects can be built; all to increase housing and affordable housing,” Whitburn said.
