Real Estate Investment

🏗️ San Diego & Orange County Lead New Construction Growth — Should Buyers Follow?

With Southern California’s historic housing shortage and ever-rising home prices, two standout regions are showing real momentum in new homebuilding: San Diego County and Orange County.

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In light of recent permit data, reform-driven development strategy, and neighborhood-level analysis, here’s what buyers need to know—and whether now is the time to follow the construction boom.

đź“Š Housing Production Hits New Highs

San Diego at a Breakpoint

  • In 2023, the city of San Diego issued nearly 10,000 housing permits—double its previous annual average of ~4,300 units.
  • By mid‑2025, the county has already met 84% of its mandated eight-year housing target, with 5,645 units permitted and another ~4,500 in the pipeline.

Orange County on the Rise

  • Between 2019 and 2023, Orange County issued 39,500 housing permits, delivering 33,667 units over that period.
  • Inventory remains low: active listings recently dropped to around 2,401 homes, down 11%, making it one of the tightest starts to a year since 2004.

🏙️ Where Construction Is Concentrated

San Diego: Urban Core Leads the Charge

  • Neighborhoods like Downtown, North Park, Bankers Hill and Hillcrest have accounted for ~30% of San Diego’s total housing permits from 2018–2024, yet occupy less than 3% of city land.
  • Notably, Chula Vista permitted the most new housing per capita: 38 units per 1,000 residents, compared to just 9.9 in El Cajon.

Orange County: Planned Communities & Policy Shifts

  • With California’s rollback of CEQA for urban infill, Orange County cities like Irvine, Tustin Legacy, Mission Viejo and Lake Forest are activating large-scale developments.
  • Multifamily vacancy rates remain ultra-low (~4%), and over 3,000 new apartment units are expected to be delivered in 2025 alone.

đź’ˇ What This Growth Means for Buyers

âś… Greater Access & Negotiation Power

  • Expanded supply in master-planned suburbs and urban infill areas gives buyers more choices—and less bidding competition, especially in certain price tiers.

âś… Modern Homes & Builder Incentives

  • New builds often include energy-efficient standards, community amenities, and incentives like rate buydowns or closing-cost credits.

âś… Smart Location Strategy Pays Off

  • While raw permit numbers are rising, many new units are built outside job hubs, such as UTC/Sorrento Valley—which issued just 336 permits from 2018–2024 despite being San Diego County’s largest job center with over 169,000 employees.
  • Selecting developments in transit-rich, walkable neighborhoods may offer stronger long-term value.

⚠️ Timing Still Matters: A Few Caveats

  • Delivery Delays remain common—some projects won’t be move-in ready for 12–24 months.
  • Price pressure is still high in coastal and luxury segments.
  • Rushed supply in weaker submarkets may lead to future oversupply or slower resale performance.

🧠 Bottom Line: Is It Time to Follow the New Construction Wave?

If you’re a buyer leaning toward modern homes, willing to wait for delivery, and targeting a well-planned area, San Diego and Orange County offer increasingly attractive options.

That said, success lies in choosing the right neighborhood, evaluating timing versus cost, and working with an expert who knows developer offerings inside-out.

🚀 Amin Vali Real Estate Investment Group: Your Guide to Smarter New Home Buying

At Amin Vali Real Estate Investment Group, we specialize in helping clients identify and evaluate pre-construction and new-build opportunities across SoCal’s rapidly expanding landscapes.

Here’s how we add value:

  • đź“Ť Target the right neighborhoods—urban core vs. suburban masterplan
  • 🤝 Access exclusive builder incentives & pre-sale pricing
  • 🧭 Guide timing decisions—pre-construction wait vs. resale opportunities

Ready to explore the best new development options in San Diego or Orange County?
Start with our Market Match Briefing—a personalized session mapping your goals to the most promising projects.

Amin Vali .

B.S in Civil Engineering,MBA, Realtor

Cell phone: +1 (949)220-1000

Phone : +1(310)300-0011

Web : www.aminvali.com

Web: www.persianinvest.com

E-mail : amin@aminvali.com

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Realtor in Radius.

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