Editordude: Here’s some good news for San Diego renters: San Diego County will have 3,226 new rental apartments opening by the end of the year, including 2,016 in the city of San Diego, 369 in Oceanside, and 414 in Chula Vista. In addition, San Diego City County has a “new affordable housing mapping tool.”

By Brian White / CBS8 / August 28, 2024

Housing construction is set to break records nationwide this year as more than half a million new rental homes hit the market. CBS 8 takes a closer look at what that means for San Diego County.

Construction of new housing is progressing at an unprecedented pace nationwide: According to Rent Cafe, an apartment-finding website, developers are expected to complete more than 518,000 rental units by the end of 2024 – a historic high and a 9% increase over 2023.

“We believe supply is critical to addressing the root cause of the problem, which is the housing shortage,” said Doug Ressler, manager of business intelligence at Yardi Matrix, which partnered with Rent Cafe on the new study.

According to Ressler, this boom in construction actually began three years ago when interest rates and costs were still relatively low. But with inflation, higher interest rates and other costs currently dominating the landscape, it could start to decline in a few years.

“Insurance continues to be a very large cost driver, both in the market price of multifamily housing and in terms of affordability. So the problem is how do you balance that kind of expense while also creating something that is affordable,” Ressler said.

Their analysis shows that 3,226 new rental apartments will be built in San Diego County by the end of the year, including 2,016 in the city of San Diego, 369 in Oceanside and 414 in Chula Vista.

“We are in a housing crisis, whether it’s renting or buying a new home, there is not enough supply,” said Chula Vista Mayor John McCann, who told CBS 8 that the process for applying for building permits had been simplified.

“Instead of having to bring the plans to the city, we tried to put everything online to make sure it was more efficient for our staff and for the people building homes,” said Mayor McCann.

Rent Café’s projections for housing completions show a decline in major cities like Chula Vista and San Diego over the next five years compared to the past five years. Escondido, on the other hand, is expected to buck the trend and see a 66% increase in new housing construction.