San Diego voters will decide in June whether to impose an $8,000 tax on homes that remain vacant for more than a year. The City Council voted 8–1 Tuesday to place the measure on the June 2 ballot. Raul Campillo cast the lone dissenting vote over concerns it could trigger a lawsuit.
Importantly, the proposal would exempt primary residences and long-term rentals. Fewer than 1% of San Diego properties would be affected, but the measure is expected to generate $12 million to $30 million annually if passed.
City officials estimate that roughly 5,115 homes in San Diego sit vacant long-term. Supporters argue that these unused properties contribute to the housing shortage and drive up costs.
“It creates a simple choice — rent it, sell it, or contribute fairly to the public impacts of keeping housing off the market,” said Councilmember Sean Elo‑Rivera, who authored the measure.
A handful of other California cities have adopted similar policies, including Oakland, Berkeley, and San Francisco. San Francisco’s Empty Homes Tax was blocked by a court in October 2024 and has been suspended pending appeal. Plaintiffs argue the tax is punitive and violates the Ellis Act and the Takings Clause of the Fifth Amendment.