San Diego, CA
San Diego shows what happens when a city actually lets builders build
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.
View of An apartment building is under construction in downtown San Diego on Jan. 16, 2026. The city is more welcoming to developers than Los Angeles, industry insiders say,
(Sandy Huffaker / For The Times)
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)
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.”
San Diego, CA
How to watch San Diego State vs. UNLV basketball game
Remarkably, the San Diego State Aztecs can still win a share of the Mountain West title despite losing four of their last five games.
SDSU (19-10, 13-6) needs to beat UNLV (16-14, 11-8) on Friday night in its home finale and then have New Mexico win at Utah State on Saturday for a three-way tie.
The Aztecs had their destiny in their hands less than a week ago, but then lost at New Mexico (13-6) on Saturday and then again at Boise State on Tuesday night, pretty much snuffing out their NCAA Tournament at-large bid chances and apparently ending their hopes at the MW title in their final season in the conference.
But then Utah State (14-5) was routed at UNLV and New Mexico lost at home to Nevada, setting up the possibility of a three-way tie. It’ll be moot, however, if the Aggies beat the Lobos, which will give them the title outright and the No. 1 seed in next week’s conference tournament in Las Vegas.
That’s life in the MW, which the Aztecs and Aggies are leaving after this season to join the new-look Pac-12, along with Boise State, Fresno State and Colorado State.
The big picture
The Aztecs were voted the unanimous preseason favorite to win the regular-season title, based on a loaded roster under coach Brian Dutcher, including the return of Miles Byrd and Magoon Gwath after pulling out of the NBA Draft, and Reese Dixon-Waters after missing last year with a foot injury.
But it’s been a rough go from almost the start, when a rough showing in the non-conference schedule put them on the bubble for an at-large NCAA Tournament berth.
They started to find themselves early in league play by running off a seven-game losing streak, but then lost consecutive games at Grand Canyon and Utah State. Their current skid includes a surprising home loss to Grand Canyon and then a startling road loss to Colorado State.
They routed Utah State at home last week before losing at New Mexico on Saturday and then being routed at Boise State on Tuesday night, when they were outrebounded 37-15.
The last three games were all Quad 1 opportunities in the NCAA NET Rankings, but going 1-2 in those games further hurt their already weak chances at an at-large tourney berth. Those rankings are used by the NCAA Tournament Selection Committee as the primary sorting tool for selection and seeding for March Madness.
Now they’ll almost certainly have to win three games in three days at the MW tournament to claim the automatic bid to reach March Madness for the sixth straight year.
Key facts
The Aztecs will be facing UNLV for the final time in the regular season, as the Runnin’ Rebels will be remaining behind in the MW.
The teams will meet for the 86th time overall, with the Aztecs leading the series 45-40. SDSU is 21-14 against the Runnin’ Rebels in San Diego and 18-8 on Steve Fisher Court.
Below is a look at how to watch UNLV at San Diego State
How to watch UNLV at San Diego State
Date: Friday, March 6
Game time: 7 p.m. PT
Where: Viejas Arena | San Diego
How to watch: CBS Sports Network
How to listen: San Diego Sports 760 (local)
San Diego, CA
Gas prices soar nearly another dime overnight
On Thursday, the average price of a gallon of self-serve regular gasoline in San Diego County recorded its largest increase since Sept. 28, 2023, rising 8.7 cents to $4.894, its highest amount since Nov. 13.
The average price has increased 15 consecutive days, rising 28.7 cents, including 7 cents on Wednesday, according to figures from the AAA and Oil Price Information Service. It is 22.4 cents more than one week ago, 38.6 cents higher than one month ago and 14.5 cents greater than one year ago.
The average price has dropped $1.541 since rising to a record $6.435 on Oct. 5, 2022.
“Gas prices are rising primarily due to a recent surge in crude oil following strikes on Iran by the U.S. and Israel,” Kandace Redd, the Automobile Club of Southern California’s senior public affairs specialist, told City News Service. “Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
“Gas prices are increasing because of seasonal factors too. Refineries are beginning the switch to more expensive summer-blend fuel, and demand is picking up as we head into the spring break season with more people on the road.”
The national average price rose 5.3 cents to $3.251, its highest amount since Sept. 11, 2024. It has risen five consecutive days, increasing 26.9 cents, including 8.9 cents on Wednesday.
The national average price is 26.8 cents more than one week ago, 36 cents higher than one month ago and 14.4 cents greater than one year ago. It has dropped $1.765 since rising to a record $5.016 on June 14, 2022.
San Diego, CA
UNLV faces San Diego State after Hamilton’s 24-point performance
UNLV Rebels (16-14, 11-8 MWC) at San Diego State Aztecs (19-10, 13-6 MWC)
San Diego; Friday, 10 p.m. EST
BOTTOM LINE: UNLV faces San Diego State after Kimani Hamilton scored 24 points in UNLV’s 92-65 victory over the Utah State Aggies.
The Aztecs have gone 13-2 in home games. San Diego State is eighth in the MWC with 9.0 offensive rebounds per game led by Miles Heide averaging 2.0.
The Rebels have gone 11-8 against MWC opponents. UNLV ranks eighth in the MWC shooting 34.4% from 3-point range.
San Diego State averages 79.1 points per game, 0.6 more points than the 78.5 UNLV gives up. UNLV averages 7.2 made 3-pointers per game this season, 1.9 fewer made shots on average than the 9.1 per game San Diego State allows.
The teams play for the second time in conference play this season. San Diego State won the last meeting 82-71 on Jan. 24. Miles Byrd scored 23 points points to help lead the Aztecs to the win.
TOP PERFORMERS: Reese Dixon-Waters is shooting 35.9% from beyond the arc with 1.6 made 3-pointers per game for the Aztecs, while averaging 13 points. Byrd is averaging 10.2 points and 5.1 rebounds over the past 10 games.
Dra Gibbs-Lawhorn is shooting 50.9% and averaging 20.6 points for the Rebels. Hamilton is averaging 1.4 made 3-pointers over the last 10 games.
LAST 10 GAMES: Aztecs: 5-5, averaging 74.9 points, 28.9 rebounds, 13.7 assists, 6.9 steals and 4.2 blocks per game while shooting 46.4% from the field. Their opponents have averaged 69.0 points per game.
Rebels: 6-4, averaging 84.1 points, 32.3 rebounds, 14.7 assists, 6.4 steals and 4.8 blocks per game while shooting 50.0% from the field. Their opponents have averaged 80.8 points.
___
The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
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