San Diego, November 24, 2025
San Diego’s housing crisis is escalating, with rising homelessness rates and rapidly increasing housing costs posing significant challenges for residents. Although there was a slight decline in homelessness in early 2025, the overall numbers remain high. The median home price has reached record levels, causing affordability issues. Local authorities are responding by issuing a high number of housing permits, but this still falls short of the required targets. Community organizations are also stepping up to support those affected by the crisis.
San Diego’s Housing Crisis: A Multifaceted Challenge
San Diego’s housing crisis continues to escalate, presenting significant challenges for residents and policymakers alike. Recent data highlights the severity of the situation, with a notable increase in homelessness and a persistent shortage of affordable housing options.
Rising Homelessness Rates
In January 2025, San Diego County reported a 6.6% decline in homelessness compared to the previous year, with the total homeless population decreasing from 10,605 to 9,905 individuals. Despite this improvement, current levels remain higher than any year from 2014 to 2023. The city of San Diego experienced a smaller 3.9% decrease in street homelessness, including over 700 individuals residing in sanctioned encampments. These trends underscore the ongoing challenges in addressing homelessness within the region.
Escalating Housing Costs
San Diego’s housing market continues to experience significant price increases. By the end of 2024, the median home sale price reached $880,000, marking the most expensive year on record for the region. This 4.8% increase from December 2023 mirrors a national trend, where home prices rose in all of the 50 largest U.S. metro areas—the first time this has occurred since May 2022. Despite this uptick, local prices dropped from a peak of $950,000 in June 2024. A continued shortage of homes has kept prices elevated, though inventory has recently begun to increase.
Efforts to Address the Crisis
In response to the housing shortage, San Diego issued 9,691 housing permits in 2023—the highest in decades and nearly double the number from the previous year. This surge suggests that long-term efforts to reform housing policies may be beginning to pay off. However, the total still falls short of the state’s target of 13,500 new homes per year for the city, as outlined in its state-mandated housing plan. Notably, 18% of the permits were for accessory dwelling units, or “granny flats,” reflecting local policy support despite some community pushback.
Community Support Initiatives
Organizations like the San Diego Food Bank are actively involved in supporting the community through various programs. The Emergency Food Assistance Program (EFAP) distributes USDA-provided food to more than 90,000 individuals at 70 distribution sites every month throughout San Diego County. Participants in the program receive food once a month at a local distribution site in their area.
Background Context
San Diego’s housing crisis is a multifaceted issue influenced by factors such as population growth, limited housing production, and economic disparities. The region’s housing production has not kept pace with the growing demand, leading to increased competition and higher prices. Additionally, a significant portion of the population faces housing insecurity, with many spending more than 30% of their income on housing. Addressing these challenges requires coordinated efforts from local government, developers, and community organizations to create sustainable and affordable housing solutions for all residents.
Frequently Asked Questions (FAQ)
What is the current state of homelessness in San Diego?
In January 2025, San Diego County reported a 6.6% decline in homelessness compared to the previous year, with the total homeless population decreasing from 10,605 to 9,905 individuals. Despite this improvement, current levels remain higher than any year from 2014 to 2023. The city of San Diego experienced a smaller 3.9% decrease in street homelessness, including over 700 individuals residing in sanctioned encampments.
How have housing costs changed in San Diego recently?
By the end of 2024, the median home sale price in San Diego reached $880,000, marking the most expensive year on record for the region. This 4.8% increase from December 2023 mirrors a national trend, where home prices rose in all of the 50 largest U.S. metro areas—the first time this has occurred since May 2022. Despite this uptick, local prices dropped from a peak of $950,000 in June 2024. A continued shortage of homes has kept prices elevated, though inventory has recently begun to increase.
What initiatives are being implemented to address the housing crisis?
In 2023, San Diego issued 9,691 housing permits—the highest in decades and nearly double the number from the previous year. This surge suggests that long-term efforts to reform housing policies may be beginning to pay off. However, the total still falls short of the state’s target of 13,500 new homes per year for the city, as outlined in its state-mandated housing plan. Notably, 18% of the permits were for accessory dwelling units, or “granny flats,” reflecting local policy support despite some community pushback.
How is the San Diego Food Bank supporting the community?
The San Diego Food Bank offers a wide variety of food and non-food related programs designed to help San Diegans in need. The Emergency Food Assistance Program (EFAP) distributes USDA-provided food to more than 90,000 individuals at 70 distribution sites every month throughout San Diego County. Participants in the program receive food once a month at a local distribution site in their area.
What are the underlying causes of San Diego’s housing crisis?
San Diego’s housing crisis is a multifaceted issue influenced by factors such as population growth, limited housing production, and economic disparities. The region’s housing production has not kept pace with the growing demand, leading to increased competition and higher prices. Additionally, a significant portion of the population faces housing insecurity, with many spending more than 30% of their income on housing. Addressing these challenges requires coordinated efforts from local government, developers, and community organizations to create sustainable and affordable housing solutions for all residents.
Key Features of San Diego’s Housing Crisis
| Feature | Details |
|---|---|
| Homelessness Rate | 6.6% decline in homelessness from January 2024 to January 2025, with total homeless population decreasing from 10,605 to 9,905 individuals. |
| Housing Costs | Median home sale price reached $880,000 by end of 2024, a 4.8% increase from December 2023. |
| Housing Permits | 9,691 housing permits issued in 2023, nearly double the number from the previous year, though still below the state’s target of 13,500 new homes per year. |
| Community Support | San Diego Food Bank’s Emergency Food Assistance Program distributes USDA-provided food to over 90,000 individuals at 70 distribution sites monthly. |
| Underlying Causes | Housing production not keeping pace with demand, leading to increased competition and higher prices; significant portion of population faces housing insecurity, with many spending over 30% of income on housing. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
