The San Diego City Council will vote today on a proposal to levy an $8,000 annual tax on vacant second homes, a revised measure that removes a previous attempt to also tax short-term vacation rentals. The proposal, spearheaded by Councilmember Sean Elo-Rivera, aims to address the city’s housing shortage and generate revenue for essential services.
A similar measure failed at the committee level in late January, with a 3-2 vote against it. The initial proposal included both vacant homes and short-term rentals, but faced opposition from those who argued that vacation rentals provide income for families and retirees. Elo-Rivera subsequently amended the plan to focus solely on vacant properties, a change that secured unanimous approval from the Rules Committee on February 25.
According to Elo-Rivera, more than 5,000 homes in San Diego sit vacant while the city grapples with a housing crisis. “San Diegans are paying too much for housing, and families can’t wait,” Elo-Rivera stated. “This measure is focused and fair: it exempts primary residences and long-term rentals and applies only to vacant second homes. It creates a simple choice – rent it, sell it or contribute fairly to the public impacts of keeping housing off the market.”
The proposed tax would apply to homes left empty for more than half the year, with exemptions for hardship, military service, disaster damage, probate, and long-term care, as well as an additional charge for corporate-owned empty homes. City officials estimate the tax could generate up to $30 million annually, earmarked for housing, homelessness prevention, infrastructure, parks, libraries, and public safety.
The proposal has drawn support from housing advocates. Stephen Russell, president and CEO of the San Diego Housing Federation, argued that the city has lost over 60,000 affordable homes since 2000, not through demolition, but through conversion to higher-market properties. “At a time when housing is scarce, leaving thousands of homes vacant only makes the crisis worse,” Russell said.
However, opponents argue the tax will not significantly increase housing supply and could unfairly burden homeowners. Activist Shane Harris stated, “San Diego families are already shouldering rising costs and increased fees. Adding a sweeping vacancy tax…adds a burden our residents simply cannot afford. This proposal risks penalizing homeowners and small property owners while delivering minimal improvement to housing outcomes.”
The City Council’s vote today will determine whether the measure proceeds to the ballot in June, leaving the final decision to San Diego voters.
