San Diego Grapples with Thousands of Vacant Second Homes

City Council considers new tax to address housing crisis and empty luxury properties

Jan. 28, 2026 at 4:07pm

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San Diego has at least 4,996 vacation homes that are not being used as primary residences or short-term rentals, nearly matching the 5,648 active short-term rental properties in the city. These empty second homes, many belonging to the very wealthy, are creating a "visceral response" from city leaders as they struggle to address homelessness and housing affordability issues.

Why it matters

The prevalence of vacant second homes in San Diego highlights the disconnect between the city's housing crisis and the underutilization of its housing stock. While many struggle to find affordable places to live, a significant portion of the housing supply sits empty, often belonging to the wealthy. This issue raises questions about equitable access to housing and the role local government can play in addressing the problem.

The details

The list of vacation homes was created by Councilmember Sean Elo-Rivera's office, based on residences that claimed exemption from the rental unit business tax. La Jolla's ZIP code alone has 852 vacation homes, far more than any other neighborhood. Elo-Rivera is now pitching a ballot measure to the City Council Rules Committee that would tax these homes, as well as short-term vacation rentals, $8,000 per year. The goal is to incentivize owners to put their homes back on the market for full-time San Diego residents.

  • In 2024, the 13,000-square-foot "Sand Castle" in La Jolla listed for $108 million.
  • On Wednesday, Councilmember Elo-Rivera will pitch the ballot measure to the City Council Rules Committee.

The players

Sean Elo-Rivera

A San Diego City Councilmember who is proposing a ballot measure to tax vacant second homes and short-term vacation rentals in an effort to address the city's housing crisis.

The Sand Castle

A 13,000-square-foot luxury home in La Jolla that listed for $108 million in 2024, representing the type of vacant second home that is contributing to San Diego's housing challenges.

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What they’re saying

“To see buildings go up — and so many of those units seemed to not be lived in — while people are sleeping outside on the street. Emotionally that bothers me. It's not right.”

— Sean Elo-Rivera, San Diego City Councilmember (Voice of San Diego)

What’s next

The City Council Rules Committee will consider Councilmember Elo-Rivera's proposed ballot measure to tax vacant second homes and short-term vacation rentals on Wednesday.

The takeaway

San Diego's housing crisis is exacerbated by the prevalence of thousands of vacant second homes, many belonging to the wealthy, that sit empty while the city struggles with homelessness and affordability issues. The proposed tax on these properties aims to incentivize owners to put their homes back on the market for full-time San Diego residents.