San Diego housing permits nearly double in 2025 as supply gaps remain

San Diego has made notable strides in issuing housing permits, nearly doubling approvals in the past year, but local builders warn that these efforts may still fall short of meeting the city’s growing housing needs. According to ABC 10News, Mayor Todd Gloria highlighted the increase in permits during a recent city council briefing, framing it as progress toward addressing affordability and supply challenges.

Permit Approvals and City Goals

City data shows that San Diego approved roughly 14,500 housing permits in the last year, nearly twice the previous year’s total, according to municipal records cited by ABC 10News. The surge is part of an ongoing effort to expand housing options in the city, including market-rate apartments, townhomes, and affordable units.

Mayor Gloria emphasized that increasing housing permits is critical to keeping pace with the city’s projected population growth and to meet the Regional Housing Needs Allocation (RHNA) targets established by the state (City of San Diego, 2026).

Builders Say Progress Isn’t Enough

Despite the gains, local developers and homebuilders argue that the current rate of permit approvals is still insufficient. According to the San Diego Union-Tribune (2026), builders point to permitting delays, construction costs, and labor shortages as ongoing obstacles that slow housing delivery.

An ADU Geeks representative echoed those concerns, noting that approval timelines often extend far beyond what headline permit numbers suggest.

"While the city has improved its initial permit review timelines, the full ADU permitting process in San Diego commonly takes six to twelve months from submission to approval, depending on site conditions, revisions, and departmental reviews,” an ADU Geeks spokesperson said. “That gap between approval targets and real-world timelines is where many projects continue to stall.”

Builders told the Union-Tribune that this disconnect between permit issuance and construction-ready approvals remains one of the biggest challenges in scaling housing production citywide (San Diego Union-Tribune, 2026).

Affordability and Market Implications

Housing advocates point out that San Diego faces persistent affordability challenges, with median home prices well above the national average. According to the California Department of Housing and Community Development (HCD), the city needs to produce approximately 28,000 new homes annually to meet demand, far exceeding current permit and construction levels.

As ABC 10News (2026) notes, the increase in permits is a positive sign, but it may take several years before the growth meaningfully impacts housing availability or stabilizes prices. The tension between issuing permits and the pace of actual construction highlights the complexity of addressing the housing crisis in high-demand urban areas.

Why This Matters

Increasing housing supply in San Diego is critical to ensuring residents can access affordable housing, reduce commuting times, and maintain economic stability. According to HUD data, areas with faster housing production often experience slower price growth, improved rental availability, and greater economic resilience.

For local residents, this means that while permit approvals signal progress, actual housing delivery remains the key factor in shaping the market.

Quick Tip: If you are planning a housing development in San Diego, it is essential to account not only for permit approvals but also for construction timelines, zoning requirements, and potential delays from environmental and city planning reviews. Keeping these factors in mind can help better predict when a project will be move-in ready.

Xavier Rodriguez is the CEO of ADU Geeks, San Diego’s leading ADU consulting and project management firm. In 2024, the company was ranked No. 1 on the San Diego Business Journal’s Fastest Growing Private Companies list in the Small Business category, achieving 594.3% revenue growth.