San Diego Voters to Decide on Empty Homes Tax

Proposed measure would tax owners of vacant second homes up to $15,000 annually.

Published on Mar. 4, 2026

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The San Diego City Council has unanimously agreed to put a measure on the June ballot that would impose a hefty tax on thousands of second homes left vacant for most of the year. If approved by voters, the 'empty homes tax' would charge owners an initial annual fee of $8,000, plus a $4,000 surcharge for corporate-owned properties. The goal is to incentivize owners to either rent out or sell their unused properties, helping to expand the city's housing supply during an affordability crisis.

Why it matters

San Diego, like many cities, is facing a severe housing shortage and affordability crisis. This measure aims to discourage owners from keeping second homes vacant for most of the year by making it financially costly to do so. Proponents believe the tax could bring hundreds or even thousands of homes back onto the market for San Diego residents, including teachers, firefighters, and recent graduates who are struggling to find affordable places to live.

The details

The proposed tax would apply to homes that are unoccupied for more than 183 days per year and are not claimed as a primary residence or used as a rental. It includes some exemptions, such as for homes that are uninhabitable due to disasters, owned by those in long-term care, or leased for more than 182 days in the previous year. The city's Independent Budget Analyst estimates the tax could generate $9.2 million to $21.4 million in the first year, though this is less than the $51 million originally projected.

  • The City Council voted on March 3, 2026 to put the measure on the June 2026 ballot.
  • If approved by voters, the tax would take effect on January 1, 2027, with the first payments due on April 1, 2028 for homes deemed vacant in 2027.

The players

Sean Elo-Rivera

A San Diego City Councilmember who proposed the 'empty homes tax' measure.

Joe LaCava

The San Diego City Council President, who acknowledged the tax is not a 'silver bullet' but could still help address the city's housing challenges.

Raul Campillo

The lone dissenting City Council vote, who expressed concerns about the measure's legal viability.

George Ching

The government affairs director at the Pacific Southwest Association of Realtors, who argued the measure would create a burden for homeowners to prove they are exempt.

Noah Yee Yick

A research and policy advocate for the Center on Policy Initiatives, who supports the measure as a way to fund the city's budget without cutting public services.

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What they’re saying

“The desire to have a damn chance to live in the city is so strong and we need to encourage that. No one is asking for free housing. They want a chance to live in the city they love and that they work in. We heard it from teachers, we heard it from firefighters, we heard it from students, we heard it from recent grads. And that's why homes shouldn't be sitting empty during a housing crisis.”

— Sean Elo-Rivera, San Diego City Councilmember (San Diego Union-Tribune)

“The empty homes initiative is not a silver bullet, in itself, to solve these challenges. We know there isn't one solution to make everything better. But let me be clear, every action we can take, small and targeted, big and bold, is important. This measure has the potential to move us in the right direction by generating new revenue to fund city services, turning empty houses into homes for San Diego, or some combination of the two.”

— Joe LaCava, San Diego City Council President (San Diego Union-Tribune)

“Even if they are exempt, they are going to have to file paperwork to prove they are exempt. That creates an opportunity for errors and appeals.”

— George Ching, Government Affairs Director, Pacific Southwest Association of Realtors (San Diego Union-Tribune)

“There are thousands of San Diegans who struggle to keep a roof over their heads, while homes across our city sit empty, owned by people wealthy enough to leave them vacant.”

— Noah Yee Yick, Research and Policy Advocate, Center on Policy Initiatives (San Diego Union-Tribune)

What’s next

If approved by voters, the 'empty homes tax' measure would take effect on January 1, 2027, with the first tax payments due on April 1, 2028 for homes deemed vacant in 2027.

The takeaway

This proposed 'empty homes tax' in San Diego highlights the growing frustration over housing affordability and the desire to find creative ways to incentivize owners of vacant second homes to either rent them out or sell them, thereby expanding the city's housing supply. While not a silver bullet, the measure represents a targeted approach to addressing the housing crisis that many cities are grappling with.