San Diego weighs annual tax on vacant second homes as officials map nearly 5,000 properties

What the city is examining

San Diego officials are sharpening their focus on a slice of the housing stock that is not occupied full time and is not operating as a short-term vacation rental. City data assembled for policymakers identified at least 4,996 homes within San Diego city limits that do not have a full-time resident and are also not registered as short-term rentals. The count is roughly comparable to the number of short-term vacation rentals in the city, estimated at 5,648.

The properties are concentrated in higher-cost areas and in parts of the urban core. La Jolla’s ZIP code contains the largest number of these second homes, while the downtown area—spanning multiple neighborhoods—has nearly as many. City leaders have framed the mapping effort as a way to understand where under-used housing units are located as the region continues to face high costs and limited availability.

The ballot proposal now moving through City Hall

A proposal backed by City Councilmember Sean Elo-Rivera would place a new annual tax on certain under-used residential properties. The concept presented to city decision-makers would levy $8,000 per year on qualifying vacant second homes, and would also apply the same annual amount to whole-home short-term vacation rentals. The proposal is structured to exclude primary residences and long-term rentals.

Earlier versions of the broader policy discussion around “vacation home” taxation have also included higher potential rates tied to bedroom count, with figures discussed publicly reaching up to $5,000 per bedroom per year. The measure’s pathway requires City Hall action before any citywide vote, and details such as definitions, enforcement, and exemptions are expected to be central to debate.

How the city identified “empty second homes”

The list of properties was created using records tied to a local tax exemption process: residences that claimed an exemption from the city’s rental unit business tax. This approach is intended to separate homes that are not being rented long term from those operating in the short-term rental market. City officials have emphasized that the category targets homes that are not primary residences and are frequently unoccupied.

The policy aim is to discourage leaving housing units unused while generating revenue that could be directed to city priorities.

Key questions likely to shape the outcome

• Scope: Whether the tax should apply only to homes that are demonstrably vacant for extended periods, or more broadly to second homes regardless of how often they are used.

• Administration: How the city would verify occupancy status, handle appeals, and avoid misclassifying primary residences.

• Housing impact: Whether the tax would meaningfully increase long-term rental supply or primarily function as a revenue measure.

• Economic effects: Potential consequences for tourism-related housing, neighborhood dynamics, and property owners operating small-scale rentals.

Why the debate is unfolding now

The proposal arrives amid sustained concerns about housing availability and affordability in San Diego. Recent indicators have highlighted historically low turnover in local homeownership, reinforcing the broader context of constrained movement in the housing market even as policymakers seek new approaches to expand access and stabilize costs.