San Diego Market Report 10/21/26

by Zach Arrington

San Diego Market Report header

New housing laws. What actually changes in San Diego?

California’s latest housing laws aim to reduce ADU fees and make certain townhouse and condo projects easier to approve. But what sounds significant statewide may have a smaller impact here.


Here’s where I see the practical value.


ADU savings depend on your address.


One law exempts the first 750 square feet of larger ADUs from impact fees. That could save homeowners money in some communities. However, the city of San Diego already waives those fees for the first two ADUs regardless of size.


Before changing your plans, check what your city actually charges. Construction costs and how you’ll use the space matter much more than a fee discount.


Buyers could gain more ownership options.


The townhouse changes are encouraging because they support homes people can purchase. But strict qualifications and building costs could limit local results. This is a gradual opportunity, not a reason to expect cheaper homes overnight.


Potential needs a reality check.


For sellers, development possibilities can strengthen a property’s appeal. But permission to build does not guarantee a project makes financial sense. Access, usable land, and construction costs determine whether buyers will pay extra for that potential.


My take: These laws give us a reason to revisit specific properties and plans. If you’re considering an ADU, buying, or selling, let’s look at what actually applies to your next move.

Zach Arrington
Zach Arrington

Broker Associate License ID: 02135675

+1(619) 374-5339 | zach@zarealtygroup.com

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