San Diego is in the midst of a housing supply shortage. ABC 10News reporter Olivia Gonzalez-Britt reports on a new development in Mission Valley.

San Diego

San Diego is experiencing a major housing supply shortage, with large-scale projects like the Broadstone Mission Valley development aiming to address the issue. The development will provide nearly 500 units, but only 25 are designated as affordable for families earning up to 50% of the area's median income, due to local inclusionary zoning requirements.

Housing advocates note that while multifamily projects are increasing, they are not sufficient to meet demand. The city has set a target of 108,000 new units by 2029, requiring a significant boost in annual construction rates. Despite recent progress, with over 700 affordable units made available in the last fiscal year, the current pace falls short of what is needed to resolve the housing crisis.

San Diego is facing a housing supply shortage

If you've ever driven east or west on Highway 8, you've probably seen this massive construction site taking shape. It's the Broadstone Mission Valley Development. It promises hundreds of units, but with San Diego facing a major housing deficit, some people are asking when will it open and how much of a dent it could really make. A large-scale housing project off Circle Drive in Mission Valley is getting attention on social media. The development includes multiple buildings and almost 500 units, 25 of which would be affordable for families making up to 50% of the area's median income. The reason it's so low is that we do have what's called inclusionary zoning here where we require typically 15% of the units to be affordable. Steven Russell is the CEO of the San Diego Housing Federation. His organization advocates for more affordable housing across the San Diego region, and right now he says we're facing a supply crisis. Some things are improving, some things are getting worse. As San Diego grows, the number of homes being built just hasn't kept up, even if rent prices have leveled off. 135,000 households are paying too much in rent. They don't have an apartment that is affordable. This shows housing production from 2004 to 2024. Steven breaks down this chart showing housing production over the last two decades, pointing to a big dip following the recession. He says while multifamily projects are on the rise, they're still not enough. The average need, this dotted line here, represents the average amount of housing we need each year to meet that year's demand. And while developments like Broadstone can help, Steven says that they're just one piece of a much bigger puzzle. I wish that the percentage were higher. Clearly, we have the need for it. The San Diego Housing Commission says over 700 affordable units have been made available in the last fiscal year, but the goal is much higher. The city's target is 108,000 new units by 2029. That means building about 1,300-1,500 units a year, triple what's currently being produced. In Mission Valley, Olivia Gonzalez, Britt, ABC 10 News.

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