SB 79 Takes Effect: Major Changes for Housing Density Near Transit in San Diego

 

California's new SB 79 housing law officially took effect on July 1 and is expected to have a significant impact on land use, redevelopment opportunities, and housing density near major transit corridors throughout San Diego County. The law requires cities to allow substantially greater residential density near qualifying transit stops, although implementation will vary by location.

The article below provides a helpful overview of where the law will apply immediately, where implementation may be delayed, and some of the local planning considerations that remain unresolved.

For property owners, developers, investors, lenders, and real estate professionals, understanding these changes will become increasingly important as the market evaluates potential redevelopment opportunities and land values in affected areas.

Article:KPBS Article for San Diego

The End of an Era: Fry's Electronics Retail Use in Serra Mesa Gives Way to New Apartment Development

The iconic Fry’s Electronics building located at 9825 Stonecrest Blvd San Diego, California 92123,  in the Serra Mesa neighborhood, was once a hub for tech enthusiasts, is being demolished to make way for a new apartment complex. The property, which has stood vacant since Fry’s closed its doors in February 2021, will be transformed into a 310-unit apartment complex.  

The Highest and Best Use of many retail properties in San Diego County has shifted to multifamily housing.  The site, just south of a Walmart along the I-15, has excellent exposure and access. 

Since Fry's closed its doors, the once-bustling parking lot has been fenced off, signaling the start of its transformation. As construction moves forward with plans for the new 310-unit multifamily development, it marks another shift in Serra Mesa’s landscape, with a growing focus on housing in the area. Though it’s bittersweet for those who remember the thrill of Fry’s and Incredible Universe, it’s a reminder of how retail spaces must evolve to meet the community's changing needs.

San Diego's Multi-Family Ranking

Rent Cafe has reported the new Multi-Family market rankings based on the most recent Yardi Matrix data from July 2024.  According to the report, which tracks Apartment properties with 50 units or more, the units had an average lease renewal rate of 53.10% and an overall occupancy rate of 94.8%. The apartment units turned over were vacant for an average of 43 days and had an average of 10 applicants. You can see the full report here: San Diego Apartment Ranking

Costar Reports Apartment Rents Continue to Increase Throughout San Diego County

 

According to Costar's Second Quarter, 2022, Multifamily Report, "asking market rent growth is soaring, and it is trending near its highest level in two decades. Performance has been driven by mid-tier and 4 & 5 Star inventory where rents are rising 15.8% and 13.3%, respectively, year over year. More than half of San Diego submarkets have recorded double-digit rent growth in the past 12 months."

City of San Diego Ordinance for No-Fault Evictions That Took Effect on May 22, 2022

 

City of San Diego Ordinance for No-Fault Evictions took effect on May 22, 2022, and is ​in place until September 30, 2022,​ or sooner based on the City ending the moratorium with the resolution of Covid.​  The link to the ordinance is here:  City of San Diego No-Fault Ordinance  

The ordinance was explicitly designed not to allow evictions to renovate until September 30, 2022.   They handled this by stating that evictions can only occur for court-ordered renovations. The law does not openly say that evictions for other renovations cannot happen. It simply omits any mention of this as something that is not allowed.  This City of San Diego ordinance extends to duplexes and single-family rentals as well as apartments.

A youtube video posted by a realtor about the new regulations is here:  Realtor's Summary of the new law.

The City of San Diego Approves a New Eviction Moratorium For Apartment Owners

 

The City of San Diego Approves A New Eviction Moratorium For Apartment Owners

Downtown apartment building intentionally flooded.

Downtown apartment building intentionally flooded. "Dispatchers received a call shortly before 12:25 a.m. from a person at an apartment complex in the 1800 block of State Street reporting that a man had turned on a fire hose on the eighth floor and was spraying water, according to San Diego police."

Vandals Flood Downtown Apartment & Condominium Property

This article takes a close look at the trends for apartment/multifamily renters and property owners in San Diego's...

This article takes a close look at the trends for apartment/multifamily renters and property owners in San Diego's commercial real estate market. #CRE #Multifamily
http://www.cbs8.com/story/39727408/more-than-half-of-san-diego-county-renters-are-burdened-by-housing-costs

Kiplinger weighs in on what to expect from the apartment market this year. #CRE #Multifamily

Kiplinger weighs in on what to expect from the apartment market this year. #CRE #Multifamily
https://www.kiplinger.com/article/real-estate/T050-C032-S014-2019-real-estate-report-the-multifamily-market.html

#Multifamily #Apartments

#Multifamily #Apartments
http://www.sandiegouniontribune.com/communities/south-county/sd-se-rent-control-20180724-story.html