San Diego officials have introduced Measure A, a tax targeting properties that remain empty for over six months.. This June ballot initiative aims to return roughly 5,100 dwellings to the market, focusing on high-value areas like La Jolla and downtown.

$8,000 annual levies for homes vacant over 182 days

The proposed Measure A , formally known as the non-primary homes tax, would impose a significant financial burden on owners of secondary properties. According to the report, the tax would start at $8,000 for homes unoccupied for more than 182 days in a single year, eventually rising to $10,000 in subsequent years. Corporate-owned housing would face even steeper penalties, with an initial $4,000 surcharge that increases to $5,000 thereafter.

If voters approve the measure this June, the first tax bills would not be mailed until early 2028. proponents argue this pressure will force owners to release up to 5,100 homes back into the rental and for-sale markets, specifically targeting high-density areas like downtown and the coastal enclave of La Jolla.

A $1.3 million opposition campaign led by Realtors

The battle over Measure A has become a high-stakes financial war between labor unions and real estate interests. As reported by the source, opposition groups have outspent supporters by nearly five to one, raising over $1.3 million through the California and national associations of Realtors. In contrast, supporters have secured roughly $282,000, largely from labor unions.

Karen Van Ness, president of the San Diego Association of Realtors, has emerged as a vocal critic, arguing that the tax infringes upon constitutional property rights. The opposition's campaign materials have characterized the proposal as "Just Another Failed City Hall Scheme," suggesting the tax unfairly targets individuals, such as elderly international owners, who may only use their properties seasonally.

The $21.4 million revenue gap and the missing housing earmark

One of the most significant points of contention involves where the money from the tax will actually go. While the measure is framed as a solution to housing affordability, the expected revenue—estimated between $9.2 million and $21.4 million in the first year—is not earmarked for affordable housing initiatives. Instead,the funds are slated to flow directly into San Diego's general fund.

This lack of specific earmarking has fueled accusations from critics that the tax is less about housing and more about city revenue. This creates a major unanswered question for voters: will the city actually use these millions to lower the $2,200 average monthly rent for one-bedroom apartments, or will the funds be absorbed into unrelated municipal spending?

A surgical strike against $900,000 median home prices

The proposed tax is a surgical strike aimed at a very small segment of the local market, affecting only about 1% of the city's total housing inventory. However, San Diego City Council members argue that even a small shift is necessary given the city's extreme cost of living, where the median home price has reached $900,000.

The measure attempts to address a systemic shortage by incentivizing the use of existing stock rather than new construction. However, the effectiveness of this approach remains unproven, and it remains to be seen if the tax will actually result in the 5,100 homes promised or if it will simply drive owners to sell their properties to more permanent residents, potentially shifting the market without increasing total supply.