San Diego Proposes $8,000 Tax on Empty Homes

City Council to consider ballot measure to address housing shortage

Published on Mar. 3, 2026

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The San Diego City Council is set to reconsider a proposal to tax vacant second homes in an effort to address the city's housing shortage. The proposed ballot measure would impose an $8,000 annual tax on empty homes that are not the owner's primary residence.

Why it matters

San Diego, like many major cities, has struggled with a lack of affordable housing and high rates of home vacancies, especially among second homes and investment properties. This proposal aims to incentivize owners of empty homes to either sell or rent out their properties, potentially increasing the city's housing supply.

The details

The proposed empty homes tax would apply to residential properties that are not an owner's primary residence and have been vacant for more than 90 days per year. Revenue from the tax would go towards affordable housing initiatives in the city. Supporters argue the tax could help address San Diego's housing crisis, while critics contend it could unfairly target vacation home owners.

  • The San Diego City Council will reconsider the empty homes tax proposal in the coming weeks.

The players

San Diego City Council

The governing body of the city of San Diego that is considering the proposed empty homes tax ballot measure.

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What’s next

If approved by the City Council, the empty homes tax proposal would then be put to a public vote in an upcoming election.

The takeaway

This proposal highlights the growing efforts by cities to address housing shortages and the impact of vacant homes, especially those used as second homes or investment properties. The outcome in San Diego could set a precedent for other cities considering similar measures.