The City of San Diego faces a housing need that could be up to twice as high as previously estimated. San Diego’s economic success and population growth over recent years have not been met with proportional growth in the number of housing units. Over the past decade, population growth has averaged 1.2 percent per year – more than double the rate of housing growth at 0.5 percent per year. The City of San Diego could fall behind its 2010-2020 Regional Housing Need Allocation (RHNA) goals by up to approximately 50,000 units if the housing supply follows current production trends. If San Diego were to provide a similar level of housing as comparable peer cities across the United States, it faces an additional shortage of approximately 130,000 housing units that are not captured by RHNA estimates. Given these figures, the City of San Diego’s housing need is estimated to be 150,000 220,000 units by 2028.

Housing affordability is an issue for at least half of San Diegans. 50 percent of San Diegans can’t find market-rate rental housing they can afford, while 60 percent cannot afford home ownership. Housing affordability impacts 100 percent of low-income residents and a large portion of moderate-income households. Roughly 70 percent of moderate-income households cannot afford home ownership, and more than 30 percent cannot afford rent. The housing supply gap also results in financial loss for the City in terms of both City revenue and direct construction jobs. The supply shortage constrains talent available to employers and degrades the quality of life and the environment in San Diego, as residents must move farther from employment and education centers to find affordable housing.