San Diego's $61B in Military Economic Activity Drives Housing Demand
San Diego continues to be a strong multifamily market, largely because of its diverse economy, military presence and ongoing demand for housing — but expensive projects make finances difficult for developers.
The military alone generates more than $61 billion in annual economic activity and supports approximately 357,000 jobs, which provides a major foundation for the local housing market, according to Gafcon, a digital construction and project management consulting firm.
"We've seen a wave of new apartment construction over the past couple of years, which has helped moderate rent increases and given renters more choices," Paul Najar, executive vice president, Gafcon PM-CM LLC, told GlobeSt.com.
The underlying demand for housing, particularly for working families and middle-income households, remains strong. The challenge is the elevated costs of construction, land and financing — making it difficult to build housing at rents people can afford.
Najar said he's seeing opportunities for infill development in neighborhoods where residents can live close to jobs, shopping and public transportation.
Taking action on this is National City Investment Group, a locally owned, privately held real estate investment company whose members have longstanding business ties to the South San Diego community. It broke ground last week on Market View, a 120-unit multifamily residential community located at 303 Highland Avenue in National City, California
The development will transform an underutilized parking lot adjacent to Manolo Farmers Market, a neighborhood destination serving National City for more than 33 years, into a vibrant residential community. Market View is scheduled for completion in the first quarter of 2028.
Market View will offer workforce housing in three residential buildings linked by open space, pedestrian connectivity and Manolo Farmers Market. Primarily composed of studios, one-bedroom and two-bedroom residences, the community will support a broad workforce population through welcoming shared spaces, private outdoor areas and amenities centered on everyday living.
It is designed by RDC, with R.D. Olson Construction (R.D. Olson) serving as the general contractor and McCullough Landscape Architecture handling landscape design.
"San Diego's long-term outlook remains positive, but we need to find more creative ways to make housing development financially feasible," Najar said.
Source: GlobeSt/ALM