San Diego is building twice as many homes: what it means if you want a new one

Quick answer: Is San Diego building more new homes in 2026?

Yes. Mayor Todd Gloria told HousingWire on November 12, 2026 that the City of San Diego permitted roughly 10,000 homes two years ago and 8,000 to 9,000 last year, about double its old pace of 4,000 a year. Most of that growth is rental apartments, so new for-sale homes are still limited

Key takeaways

• San Diego's permit pace is about double its long-run average.
• Most new construction is for-rent apartments, not for-sale houses.
• Rates fell for a fourth straight week to 7.11% (November 12, 2026).

If you've been hoping a wave of new homes would make buying easier, you're asking the right question. The answer depends on what's being built and who it's built to rent or sell to.

Is San Diego really building more homes?

It is. In a November 12, 2026 HousingWire interview, Mayor Gloria said the city historically issued about 4,000 new-home permits a year. He said permits hit roughly 10,000 two years ago and landed between 8,000 and 9,000 last year.

Part of the reason is speed. The city set a 30-day review target for affordable and transit-oriented projects, and the mayor says those reviews now average about nine days. His internal goal is roughly 15,000 homes a year, against a state housing assignment of 108,000 homes over about eight years.

What kind of new homes are being built in San Diego?

Here's the catch for buyers: HousingWire reports that most of the growth is for-rent multifamily. That helps renters first. It doesn't put many new single-family homes on the market for you to buy.

Midway Rising is a good example. The San Diego City Council approved it 8-0, KPBS reported on November 10, 2026. The plan calls for 4,250 homes, including 2,000 subsidized affordable rentals, plus a 16,000-seat arena and 14.5 acres of parks. No groundbreaking date was given, and the financing district still needs county approval.

For-sale new construction is still out there, mostly in master-planned communities across the county. Before you fall for a model home, read up on the pros and cons of buying new construction in San Diego.

Does more building mean lower prices for buyers?

Not overnight. New supply takes years to show up as finished homes. In the meantime, the resale market is already giving buyers a little more room.

The California Association of Realtors reported San Diego County sales fell 12.2% from a year earlier in September 2026, and the county's price slipped 3.7% from August to $1.05 million, according to 10News. For more on where prices are heading, see our post on whether San Diego home prices are falling.

Rates are helping too. Freddie Mac's November 12, 2026 survey put the 30-year fixed at 7.11%, down for a fourth straight week but still above 6.24% a year ago.

My own math: on a $1.05 million home with 20% down, an $840,000 loan at 7.11% runs about $5,651 a month in principal and interest. At last year's 6.24%, it would be about $5,167. (Taxes, insurance, HOA dues, and any Mello-Roos are extra.) Run your own numbers with our mortgage calculator.

How do you shop new construction smartly right now?

• Ask about incentives. Builders often pay toward closing costs or a rate buydown. Here's what we found when we looked at builder incentives in San Diego this fall.
• Check the extra taxes. Many newer communities carry special assessments. Learn how Mello-Roos works before you compare monthly costs.
• Bring your own agent. The sales office works for the builder. Your agent works for you on price, upgrades, and contract terms.
• Get an independent inspection. Brand new doesn't mean flawless.

Bottom line

San Diego is permitting about twice as many homes as it used to, but most are rentals, so for-sale new construction is still tight. With rates easing and resale sales slowing, you have more room to negotiate on both new and existing homes than you did a year ago.

Want to know what this means for your home or your search? Browse San Diego County homes for sale, call or text me at (858) 295-0556, or book a quick call at calendly.com/mance-riederhomes/strategycall.

This weekend around San Diego County

• Holiday Marketplace at Mission Trails Regional Park (Saturday and Sunday, November 14 and 15, 9 a.m. to 3 p.m.): Local vendors with handmade ceramics, jewelry, and art at the Visitor Center, with part of sales supporting the park. Details
• Train Song Festival (Saturday, November 14, 10 a.m. to 4 p.m.): Free music, Poway-Midland Railroad train rides, and a farmers and artisan market at Old Poway Park. Details
• Native American Heritage Festival (Saturday, November 14, 1 to 4 p.m.): A free all-ages event with Indigenous artists and performances at the Carlsbad City Library Learning Center. Details
• Winter Wonder at Belmont Park (opens November 14 and runs through January 3, 2027): A holiday light walk in Mission Beach with more than one million lights. Details

Keep reading

• What a mortgage rate buydown is and how the 2-1 buydown works
• What HOA fees cover in San Diego
• Why a home inspection matters when buying in San Diego

Mance Rieder | Broker Associate, DRE #02050930 | Rieder Homes Group | REAL Broker, LLC