Owners keep thousands of San Diego homes vacant despite high rents. They could soon be taxed

San Diego voters will decide in June whether to implement a vacant home tax targeting an estimated 5,000 properties that sit empty most of the year despite the city's severe housing shortage.

The proposed levy could generate up to $24 million in its first year, with revenue designated for affordable housing projects while potentially encouraging property owners to return vacant units to the rental market.

The tax proposal comes as San Diego grapples with one of California's most expensive housing markets, where average home prices approach $1 million and one-bedroom apartments rent for over $2,000 monthly.

City Councilmember Sean Elo-Rivera, who sponsored the legislation, views the measure as part of a broader strategy to address statewide affordability challenges.

If approved, San Diego would join other California municipalities using vacant property taxes as both a revenue tool and housing policy mechanism.

For California property developers and homeowners, the initiative reflects growing municipal efforts to maximize existing housing stock rather than relying solely on new construction.

The tax structure would create financial pressure on property owners who keep units vacant, potentially affecting investment strategies for second homes, short-term rentals, and speculative holdings.

The San Diego measure's outcome could influence similar proposals in other high-cost California markets where vacant properties are viewed as contributing to housing shortages.