The San Diego City Council voted 8-1 to place a new tax on empty or vacant homes on the June 2 ballot as part of the city’s effort to increase housing supply. If approved, vacant corporate-owned homes, apartments and other residential units would incur an annual tax starting at $12,000 (including surcharges) in 2027, increasing to $15,000 in subsequent years. Vacant homes are defined as residential dwellings that remain empty for more than half the year. Voter approval of a residential vacancy tax by San Diegans is expected to be legally challenged in court, as in other California cities.

If adopted, the provision could open the door for broader vacant tax measures aimed at non-residential corporate-owned commercial structures, such as retail space, next.