The Numbers
San Diego County added roughly 24,000 new households last year, according to SANDAG data, while the housing stock grew by a fraction of that. The gap between household formation and new supply has been a persistent feature of the local market for the better part of a decade.
Why It Matters
When households grow faster than housing units, the math is simple: more people are competing for the same roof. That shows up in both home prices and rents, and it explains why San Diego has stayed resilient even during periods of high mortgage rates.
What To Watch
- Permitting activity in North County and South Bay
- ADU (accessory dwelling unit) construction, which has become a meaningful share of new supply
- Multifamily completions in the urban core
The takeaway for buyers and sellers alike: structural undersupply isn't going away soon, which should keep a floor under valuations even through short-term rate volatility.