By Zane Willman, Associate Advisor | CCG Real Estate Advisors
San Diego continues to move toward policy that supports added housing supply, density near transit, and more thoughtful land use planning. The recent approvals affecting the College Area and Clairemont are not small adjustments. They set the direction for growth, development, and neighborhood character for decades.
These changes also arrive at a moment when San Diego continues to face persistent housing shortages and rising demand. Understanding what was approved and what it may lead to matters for residents, investors, and anyone watching the evolution of the city.
College Area: A Dramatic Expansion of Housing Capacity
The College Area plan is one of the most aggressive growth frameworks the city has adopted in recent memory. Under the new zoning, the number of housing units allowed in the College Area would increase from around 8,200 to approximately 34,000. That represents more than 4x the previous capacity.
Much of this growth potential is concentrated near San Diego State University and along corridors such as College Avenue, Montezuma Road, and El Cajon Boulevard. The goal is simply to put more housing closer to schools, jobs, services, and transit. Encouraging redevelopment of aging commercial corridors into neighborhoods that blend residential uses, retail, and community amenities.
This scale of change will not happen overnight. Development will depend on interest rates, construction costs, and infrastructure coordination. Residents have already voiced concerns around traffic, public services, and community character. Those issues will require careful planning.
But structurally, the College Area is no longer a place defined by incremental growth. It now has the zoning capacity to absorb thousands of new residents over time. It is positioned to become one of the more urban and housing rich neighborhoods in the city.
Clairemont: Strategic Growth with a Slower, More Measured Approach
Clairemont tells a different story.
The community plan update increases capacity, but at a much more conservative pace compared to the College Area. The number of housing units permitted under zoning rises from about 33,300 to approximately 52,800. That is an increase of roughly 59%.
Most of the added density is directed toward commercial centers, major corridors, and areas served by the Blue Line trolley. Village style districts, walkable streets, and gradual mixed use redevelopment are central concepts.
Unlike the College Area, much of Clairemont’s existing residential fabric remains largely unchanged. The intent is to introduce new supply while preserving the character of long established neighborhoods. Growth is expected to come from selective redevelopment of aging shopping centers and higher density projects near transit.
And in the broader context of city planning, Clairemont represents the slower end of the spectrum. Of the last seven growth blueprints approved by San Diego, Clairemont would see the smallest percentage increase in potential new homes, and the College Area would see nearly the largest, according to city data.
What This Means for Both Markets: Clearer Direction and a Vote of Confidence in Growth
Viewed together, the College Area and Clairemont updates send a strong message about the direction of San Diego housing. The city is moving toward policies that make it easier to build more homes where infrastructure already exists. It is prioritizing development that aligns with transit, education, and employment hubs rather than pushing residents farther inland. And it is acknowledging that zoning reform is necessary if the housing crisis is going to improve.
For investors and developers, the updates provide clarity. Zoning certainty reduces risk and allows long range planning. Corridors that once felt stagnant may now support higher density and deeper reinvestment. Multifamily developers, especially, will find more viable paths forward in both communities.
For residents, there will be tradeoffs. Growth brings:
- Construction
- Changing streetscapes
But it also brings:
- More housing choice
- Revitalized commercial areas
- Potentially less upward pressure on rents over time.
Most importantly, the approvals reinforce ongoing confidence in the San Diego market. Despite high costs and broader economic uncertainties, the city continues to plan for growth as there remains a clear belief that demand, population pressures, and long term fundamentals justify forward looking land use policy.
As projects take shape, collaboration between neighborhoods, the city, and the private sector will matter greatly. San Diego is taking deliberate steps to expand housing supply, modernize zoning, and prepare key neighborhoods for the next chapter. And while debate will continue, the signal is clear: San Diego is planning for growth.
Where We Come In
Moments like this are where long term wealth strategies are made. New zoning can create investment opportunities, redevelopment potential, and shift overall risk exposure.
Our advisory team works with investors to evaluate scenarios and align real estate decisions with YOUR broader financial goals.
If you want to understand how these changes could shape your next five to ten years, book a virtual strategy session and we will walk through it together.
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