There are only two condominium projects currently under construction in downtown California.
In a state facing a housing crisis, that statistic is not just surprising—it’s revealing.
In 2002, California passed Senate Bill 800, the Right to Repair Act.
It standardized construction defect law, but also expanded liability:
While intended to create clarity, it fundamentally shifted risk.
Condominiums became particularly vulnerable due to:
Insurance costs rose dramatically.
Coverage tightened.
In many cases, it became difficult to obtain at all.
Developers adapted.
They didn’t stop building—they shifted to apartments.
Over time, California’s housing production became heavily weighted toward rentals.
Ownership housing—particularly condos—declined significantly.
The result is a widening gap between renting and owning, especially for first-time buyers.
Today, the state is attempting to address these constraints:
Together, these bills target the root issue: risk.
At the same time, San Diego is implementing local changes through the 2026 Land Development Code Update.
Through Complete Communities Housing Solutions (CCHS), the City is:
This creates a rare alignment between state and local policy.
Despite progress, a critical gap remains.
Today’s housing market resembles an hourglass:
The missing middle—often the most accessible entry point to homeownership—is still constrained.
If the goal is to expand homeownership, the next step is clear:
This could include:
Without addressing this layer, the pipeline remains incomplete.
Even with reform, key challenges remain:
Two identical projects—one rental, one condo—do not pencil the same.
The decline of condo development was never about design.
It was about risk.
That risk profile is beginning to shift—but not disappear.
San Diego may be one of the first markets where:
begin to support homeownership again.
California didn’t stop building homes people can own by accident.
It happened through policy.
Now, through both state legislation and local implementation, that policy environment is beginning to change.
But we are still in transition.
If we want to meaningfully expand homeownership, we need to look beyond just litigation reform.
We need to address:
The opportunity is emerging—but it requires precision.
Curious how others are thinking about this?
This content is provided for general informational purposes only and does not constitute legal, financial, or entitlement advice. Legislative measures, local policy implementation, and project feasibility are subject to change and vary based on site conditions, jurisdiction, and agency interpretation. Project feasibility must be evaluated on a site-specific basis in coordination with qualified professionals and the appropriate public agencies.
