San Diego is confronting one of the most critical housing challenges in its history. Rents are rising, and the housing supply is limited. Affordability concerns are ongoing. City leaders, developers, and community planners are pursuing a wide range of housing projects. These projects range from high-density mixed-use complexes to affordable homes and transit-oriented development. These efforts not only provide new living options. They also aim to shape the future of how San Diegans live, work, and commute.
Major New Housing Projects on the Horizon
One of the most significant developments in San Diego’s housing landscape is the Midway Rising project. This ambitious plan includes more than 4,000 homes. Half of these homes will be affordable. The plan will transform part of the Midway neighborhood. It will introduce housing, parks, retail, and even a new world‑class sports arena. The project is one of the largest redevelopment efforts in the city’s history. It signals a bold push to integrate housing with community amenities.
Another major approved project is the 380‑unit Bella Mar Apartments. It is located next to the Palm Avenue Trolley station in Palm City. Approved after years of planning, this development includes a mix of one‑, two‑, and three‑bedroom units. It is designed around transit access. This design helps residents reduce car dependency while boosting housing density near public transportation.
Over 1,000 new homes are planned around San Diego’s trolley stations. There is particular focus near the Palm Avenue station in San Ysidro. This is accelerated by city incentives and state infrastructure grants. These grants support sewer, water, and transit connections. This type of transit‑oriented housing aligns with regional goals. It helps to reduce commute times and improve the quality of life for residents.
Affordable and Supportive Housing Efforts
Affordable housing remains a key focus of San Diego’s development strategy. The city has recently recommended allocating $15 million toward four new projects. These projects could create 528 new affordable homes for low and moderateincome households. The homes will be distributed across neighborhoods. These neighborhoods include Redwood Village, Grantville, and Hillcrest. Some units are earmarked for individuals at risk of homelessness.
In addition, the City and County have celebrated openings of new affordable housing. This includes the recent inauguration of 100 affordable apartments in San Ysidro. These apartments include supportive services for residents with mobility challenges. They also link housing to public transport access.
State and federal support also plays a major role. Funding from programs like REAP 2.0 is helping underwrite nearly 1,000 affordable units. Many of these units are expected to open between 2026 and 2030. This initiative is helping San Diego build more equitable and accessible housing options.
Organizations like National CORE have made longstanding efforts. They have added hundreds of affordable homes across San Diego County. These include communities designed for people exiting homelessness.
Vision for Transit, Density, and Neighborhood Plans
San Diego is also planning longer‑term housing strategies that go beyond individual projects. The city has issued nearly 10,000 housing permits in 2024 alone. This number doubles long‑term averages. It showcases momentum toward meeting growing demand.
Even broader planning efforts, such as the Clairemont Community Plan Update, envision 17,000 new homes over the next several decades. The focus is on high‑density, transit‑oriented corridors. These plans aim to preserve neighborhood character while expanding housing capacity.
Why This Matters
These developments range from large‑scale mixed‑use projects to targeted affordable housing. They illustrate San Diego’s multi‑faceted approach to its housing crisis. The city combines market‑rate and affordable units. It invests in transit‑connected communities. By streamlining planning for new development, the city aims to create a more diverse and resilient housing supply. This supply supports a growing population.
Many of these projects are years from completion. However, they represent a crucial step in making San Diego a more livable and equitable city for all residents.
Works Cited
City of San Diego. San Diego Expands Housing and Advances Midway Rising Project. City of San Diego, 2025.
City of San Diego. City Recommends Allocating $15 Million Toward 528 New Affordable Homes. Inside San Diego, Dec. 8, 2025.
Garrick, David. 1,000 New Homes Sprouting Around San Diego Trolley Station. Planetizen News, Aug. 18, 2025.
After 6 Years, San Diego Approves 380‑Unit Housing Project Next to Blue Line Trolley. KPBS Public Media, Aug. 20, 2025.
National CORE. National CORE Launches Construction of 24th San Diego County Affordable Housing Community. National CORE, 2024.
San Diego Foundation & SANDAG. REAP 2.0 Funding for Affordable Housing Projects. SDF Press Release, July 2025.
