31 Jul Community challenges to state density bonus laws could effect San Diego real estate
California’s density bonus laws, which allow builders to build more units than what might otherwise be allowed as long as low-income housing units are set aside, could see a few hiccups in the San Diego real estate market after opponents successfully challenged the law in Encinitas.
That city currently has density bonus projects under review, and city officials were concerned about legal challenges after increased community scrutiny. Issues with the state’s density bonus law were the focus of a recent Encinitas City Council Meeting and the council voted to make several changes to restrict development laws, including requiring city employees to be conservative when planning for a project’s density, and requiring low-income units be similar in size to market rate units.
Real estate in San Diego is among the highest priced in the nation, and the area struggles with affordability. Real estate in San Diego County has an assessed value of $433.4 billion, according to county figures.
San Diego real estate ranks #6 as the most expensive real estate in the United States, according to a report by Zillow.com and Movoto.com. Overall, the area’s assessed values are up 6 percent from last year, and all 18 cities in the county experienced positive growth. Cities such as Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Santaluz and Solana Beach are experiencing growth as well.