As Los Angeles grapples with a housing shortage, it could learn from San Diego, which has proved better at convincing construction companies to build more.

The city is more welcoming to developers, industry insiders say, with fewer regulations and fees, better planning and less rent control.

“It is easier to build in San Diego over Los Angeles because of its legal structure, political culture and defined processes,” said Kevin Shannon, co-head of capital markets at real estate brokerage Newmark, which is overseeing the sale of a sprawling development site in San Diego that is zoned to have thousands of apartments.

The result: As of last quarter, the number of new apartments under construction in San Diego County rose 10% from three years earlier, CoStar data show. New apartment construction in Los Angeles County tumbled 33% over the same period, hitting an 11-year low in the three months through December. San Diego is expanding its apartment pool at nearly twice the rate of L.A. and other major city clusters in the state.

L.A.’s vacancy rate is among the lowest in the country and rental rates are among the highest nationwide. Still, the supply of fresh rental units, which make up the bulk of new housing in Los Angeles, is thinning out despite robust demand.

Although local lawmakers create regulations to protect renters and keep rents down, hoping to combat homelessness, developers and economists warn that the wrong regulations often can add to the cost of building and maintaining apartments, making it hard to make a profit on new and existing projects. People who already have apartments may be protected, but over the long run, fewer are built, they say.

Rent control has been at the center of the debate recently. The city of Los Angeles just tightened its rent control.

It has just lowered the cap on rent increases for rent-stabilized apartments, a massive portion of the city’s housing stock that houses nearly half of the city’s residents. Although the cap doesn’t apply to units built after 1978, it still discourages developers, as it sends the wrong signal to those already worried about restrictions.

At the state level, a similar housing bill that would have halved the cap on rent increases to 5% a year died in the Assembly last week. Assemblymembers decided that too many restrictions can be counterproductive.

“That sounds nice and humanly caring and all that and warm and fuzzy, but someone has to pay,” said Assemblymember Diane Dixon (R-Newport Beach). “How far do we squeeze the property owners?”

San Diego doesn’t have traditional rent control, though it does enforce less restrictive statewide tenant protections.

In Los Angeles, Measure ULA, known as the mansion tax, is another top reason that developers decide to build elsewhere. They also point to other local regulations that make it challenging to evict tenants who don’t pay their rent.

“L.A. has been redlined by the majority of the investment community,” apartment developer Ari Kahan of California Landmark Group said in October.

It’s easier to do business in San Diego because of its real estate development policies, project approval process and overall business-friendly attitude, industry insiders said. It outlines what it wants in a general plan, and if projects line up with that, they can be approved at the city staff level.

“San Diego has a clear, enforced General Plan, and for the most part, it sticks to it,” Shannon said. “San Diego updates its Community Plan and then lets projects proceed if they comply.”

“In contrast, L.A.’s General Plan is outdated and inconsistent,” he said. “Almost everything requires discretionary approvals.”

A view of the downtown San Diego skyline Jan. 16, 2026. It’s easier to do business in San Diego because of its real estate development policies, project approval process and overall business-friendly attitude, industry insiders said.

(Sandy Huffaker / For The Times)

Elected officials in L.A., including the City Council, have the discretion to decide whether a new project can be built, which can add months to its approval process as the proposal winds through City Hall and public meetings.

“The City of San Diego continues to prioritize the permitting and development of new homes to address our region’s housing needs and support a better future for all San Diegans,” said Peter Kelly, a spokesman for the city Planning Department. “Through updated community plans, streamlined permitting processes and proactive implementation of state housing laws, we are working to increase housing supply and affordability in all neighborhoods.”

The city updates its Land Development Code annually to streamline the permitting process and accelerate housing production, he said. It also adds capacity to build new homes through rezoning and updates to the city’s community plans, with a focus on placing new homes and jobs near transit, parks and services.

“If we can bring more supply, it will hopefully bring down rents,” said Kip Malo, a real estate broker in JLL’s San Diego office.

Most new apartments are being built outside of downtown San Diego, Malo said. “The city has made a concerted effort to try to clean up downtown and it has gotten better, but it’s still got a ways to go.

Of course, developers in San Diego still face the same headwinds that affect developers in other cities, such as interest rates that make construction loans more expensive than they have been in years past.

Recent policy out of Washington also hasn’t helped. Higher tariffs have driven up the prices of construction materials and equipment, while the crackdown on undocumented workers has thinned and spooked much of the international workforce on which the industry depends.

An apartment building is under construction in downtown San Diego on Jan. 16, 2026. In L.A., elected officials, including the City Council, have the discretion to decide whether a new project can be built, which can add months to its approval process as the proposal winds through City Hall and public meetings.

(Sandy Huffaker / For The Times)

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California’s construction industry depends on immigrant workers. Around 61% of construction workers in the state are immigrants, and 26% of those are undocumented, according to a June report from the Bay Area Council Economic Institute.

San Diego is “still California,” Malo said, and has hurdles to get projects approved that aren’t faced by builders in Texas and other states with more lax requirements for new projects, Malo said, but “the political winds have shifted in developers’ favor.”

A magnitude 4.9 earthquake occurred at 5:56 p.m. Monday about 17 miles northeast of Palm Desert in Riverside County, producing shaking that was felt throughout San Diego County, the U.S. Geological Survey said.

The shaking spread all the way to the Southern California coastline, drawing notice from San Diego and Chula Vista to Long Beach and Malibu.

A 3.5 after shock followed at 6:50 p.m.

The main quake broke near the San Andreas fault, an 800-mile-long system, part of which extends through the Cajon Pass area and Coachella Valley and into the Salton Sea.

“We periodically have quakes of this size, and they rarely lead to something bigger,” said Tom Rockwell, a seismologist at San Diego State University. “But 5% of the time, they do give us something bigger.

“We haven’t had a big quake on the San Andreas for 300 years. The interval time for one is about 150 years.”

For the second week in a row the Monster Energy AMA Supercross Championship welcomed a sold-out crowd to begin its season, this time inside the intimate setting of Snapdragon Stadium for the second round of the 2026 Monster Energy SMX World Championship. One week after he captured a memorable debut victory with Red Bull KTM Factory Racing, 450SMX Class points leader Eli Tomac went back-to-back following a hard-fought Main Event in which he outlasted Progressive Insurance ECSTAR Suzuki’s Ken Roczen and Honda HRC Progressive’s Hunter Lawrence for the Colorado native’s 55th career win.

Another sold out crowd was on hand inside Snapdragon Stadium as the
2026 Monster Energy Supercross season traveled to San Diego.

The 450SMX Class Main Event began with Lawrence leading the way for the holeshot, followed closely by Roczen and Tomac. The trio quickly asserted themselves at the front of the field and soon pulled away to set the stage for a three-rider battle for the win. Lawrence was impressive early on and successfully fended off heavy pressure from Roczen, but as their battle continued Tomac joined the fight, which pushed Roczen to make a pass around Lawrence with 14 minutes and a lap to go. Tomac was able to move into second as another battle for the lead unfolded. Tomac briefly made the pass on Roczen, but the German battled back to reclaim the position and lead most of the Main Event. 

With time running out, Tomac made the move on Roczen again and solidified his hold of the lead with six minutes remaining. Roczen’s pace slowed enough for Lawrence to make the pass for second and from there the Australian looked to track down Tomac. Tension was high in the closing laps, but Tomac kept Lawrence at bay on the final lap for his 87th career SMX win (Supercross + Pro Motocross) by a margin of 1.3 seconds. The victory moved him into a tie with Jeremy McGrath for second all-time. Lawrence’s runner-up finish equaled the best result of his career, while Roczen now has second and third place finishes to begin the season.

Just off the podium in fourth was Monster Energy Kawasaki’s Chase Sexton, who impressed in a come-from-behind effort after he hit the gate to begin the Main Event and started at the tail end of the field. Along the way, Sexton made contact with defending champion Cooper Webb, who went down in the incident and recovered for an eighth-place finish aboard his Monster Energy Yamaha Star Racing machine.

Tomac’s pair of wins through the first two races has extended his lead in the 450SMX Class standings to eight points over Roczen, while Lawrence moved from fourth to third and sits 10 points out of the lead.

It’s back-to-back wins for Red Bull KTM Factory Racing’s Eli Tomac,
who captured his 55th career Supercross victory and 87th career SMX win
to move into a tie Jeremy McGrath for second all-time.

Eli Tomac – 1st Place – 450SMX Class

“Me and Ken [Roczen] had an unbelievable battle there and once we got into the lead I felt like I was in a really good groove. Towards the end there I was not paying attention and just looking at my front fender, I didn’t know Hunter [Lawrence] was there [because] I was so focused on marking Kenny around the track. I [went] over the tunnel on the last lap and heard Hunter revving his bike and was shocked he was right there. I feel fortunate I held onto the lead there. I guess I need better self-awareness next time. That was close.”

Honda HRC Progressive’s Hunter Lawrence came close to capturing his first Supercross victory and impressed every step of the way in a runner-up effort.

Hunter Lawrence – 2nd Place – 450SMX Class

“It’s bittersweet when you’re so close. I wanted to be there with those guys last week [up front] so we worked really hard this week and made some progress, which is always rewarding. I think I shot my shot too fast on the last lap and thought I’d dive bomb into the corner, but at the last minute I thought it was going to be a really dirty move if I followed through, so I backed out of it. It was cool. A really great race.”

Another podium performance by Progressive Insurance ECSTAR Suzuki’s Ken Roczen has him in the thick of the early title fight in the 450SMX Class.

Ken Roczen – 3rd Place – 450SMX Class

“Me and Eli [Tomac] went back and forth a couple times and then in the middle of the race I just had a couple laps where I was all over the place and fell off the back a bit and got passed. I tried to just settle back in and at least stay close to those guys. We have 17 rounds and it can swap around real quick, so being on the podium is really good. We want to win, but at the same time we can’t be mad at a podium. We’ll keep at it, see if I can snag a couple of wins, and see where it goes.”

A captivating battle between teammates headlined the second race of the Western Divisional 250SMX Class, as Monster Energy Yamaha Star Racing’s Haiden Deegan came out on top for the first time this season. The eighth career victory for the defending Western Division Champion wasn’t without controversy, as he went bar-to-bar with fellow Monster Energy Yamaha Star Racing rider Max Anstie, who entered as the points leader. After Anstie grabbed the holeshot, he and Deegan resumed their entertaining battle that began in the Heat Race with a multi-lap fight for the lead. Deegan appeared to be faster, but the Englishman’s veteran savvy kept his younger teammate at bay. With nine minutes and one lap to remaining Deegan made his move in a bowl turn and aggressively cut down under Anstie, who went high to concede the position. As he exited, Deegan’s rear wheel hit Anstie’s front wheel and took the red plate holder to the ground. Deegan sprinted away as Anstie eventually remounted in sixth place.

As Deegan established a lead of over five seconds, the attention shifted to an exciting battle for the podium between Honda HRC Progressive’s Chance Hymas, Monster Energy Pro Circuit Kawasaki’s Cameron McAdoo, and Monster Energy Yamaha Star Racing’s Michael Mosiman. After McAdoo made the pass on Hymas for second, Mosiman followed through shortly after as Hymas nearly crashed defending the position.

Deegan went unchallenged and took his first win carrying the No. 1 plate by a margin of 7.6 seconds over McAdoo, who finished last (22nd place) at the Anaheim opener and is coming back from a torn ACL suffered last season. Mosiman recorded his 11th career podium finish in third. Anstie battled back to finish fifth.

With the win, combined with Anstie’s finish, Deegan moved from fourth to first in the Western Divisional 250SMX Class standings, a single point ahead of Anstie. Hymas, who finished sixth, sits third, five points out of the lead.

While it wasn’t without controversy, the first win of the season for
Monster Energy Yamaha Star Racing’s Haiden Deegan moved
him into control of the Western Divisional Championship.

Haiden Deegan – 1st Place – Western Divisional 250SMX Class

“This one feels good. I wanted to show it at A1, but stuff happens. I came out swinging [tonight]. Sorry to Max [Anstie], I didn’t really want it to go that way. I tried to cut down [in the corner] so he wouldn’t cut down [to counterattack] and we came together.”

After a challenging opening round where he finished last,
Monster Energy Pro Circuit Kawasaki’s Cameron McAdoo
rebounded with an impressive second-place effort.

Cameron McAdoo – 2nd Place – Western Divisional 250SMX Class

“I didn’t expect to get 22nd place last weekend and end up in B practice this morning, so I had something to prove. It has been a long time and as you all know this sport is about trying. I always pride myself on being able to come back after being off the bike for a long time. Tonight was pretty special. I’m just a kid from Iowa living my dream and I’m really grateful I keep getting to do this. I have a lot of belief in myself that I belong here.”

Monster Energy Yamaha Star Racing’s Michael Mosiman was consistent throughout the Main Event and recorded his 11th career podium result.

Michael Mosiman – 3rd Place – Western Divisional 250SMX Class

“It feels great. We’ve been putting in the work, and it’s been a long road. Just to be able to hang in there the whole moto, to be right there and end up on the podium. To be able to push the pace feels really great. We’re going to keep it rolling.”

Monster Energy Yamaha Star Racing’s Max Anstie entered as the points leader and was leading the Main Event until an incident with his teammate Deegan put him on the ground and resulted in a fifth-place finish.