San Diego's Building Boom: What 1,000 New Homes Mean for Cash Buyers
TL;DR
- San Diego County received 29 applications for nearly 1,000 new housing units under a building exemption policy that bypasses traditional vehicle miles traveled requirements
- The exemption, effective since November 2025, creates opportunities for cash buyers to connect with developers before properties hit the MLS
- Most units will be in unincorporated San Diego County areas, with construction timelines spanning 2025-2026
- Cash buyers can leverage direct relationships with builders to secure pre-market deals without competing in traditional bidding wars
- The inventory boost comes as San Diego's existing home market shows only 2,385 sales in September 2025, the fourth-slowest September since 1988
San Diego County just opened the door to a significant housing expansion. On November 24, 2025, Voice of San Diego reported that county officials received 29 applications proposing nearly 1,000 housing units under a new building exemption policy. This regulatory shift allows developers to bypass traditional California Environmental Quality Act (CEQA) vehicle miles traveled (VMT) requirements, accelerating the path from planning to construction.
For cash home buyers, this development represents a strategic opportunity. While most San Diego homebuyers wait for listings to appear on the Multiple Listing Service (MLS), savvy cash buyers can establish direct relationships with developers and builders during the pre-construction and early construction phases. With no financing contingencies and the ability to close quickly, cash buyers offer developers certainty and speed that traditional financed buyers cannot match.
This article breaks down what the building exemption means, where these new units will be located, and how cash buyers can position themselves to access this emerging inventory before it becomes widely available.
Understanding San Diego's Building Exemption Policy
The building exemption policy that unlocked these 1,000 units stems from California Senate Bill 743, which reformed how environmental impacts are measured for development projects. Previously, developers had to demonstrate that new housing projects wouldn't significantly increase vehicle miles traveled (VMT) in the area. This requirement created substantial barriers for infill and multi-family housing development.
The San Diego County exemption allows qualifying projects to proceed without full VMT analysis, dramatically reducing the time and cost of the approval process. According to the Voice of San Diego report, county officials confirmed receiving 29 applications that leverage this exemption, collectively proposing nearly 1,000 housing units.
Why This Policy Shift Matters for Cash Buyers
- Speed to Market: Projects using the exemption can move from approval to construction 6-12 months faster than traditional developments
- Developer Motivation: Faster approvals reduce holding costs and financial risk, making developers receptive to pre-construction commitments
- Geographic Focus: The exemption primarily applies to unincorporated San Diego County areas with less competitive submarkets
Impact on San Diego's Housing Inventory Crisis
San Diego County's housing market has been constrained by limited inventory for years. Recent data from the San Diego Union-Tribune shows the severity of this shortage:
- September 2025 recorded only 2,385 home sales, the fourth-slowest September since 1988
- The median days on market increased from 8.5 days in 2022 to 37 days in September 2025
- Total 2024 sales reached just 25,920 homes, barely above 2023's record low of 25,317
The addition of nearly 1,000 units represents approximately 4% of San Diego County's annual housing sales volume. While this won't solve the inventory crisis overnight, it signals a meaningful shift in regulatory approach that could accelerate housing production across the county.
For context, Redfin's October 2025 data shows San Diego County's median sale price at $885,000, down 1.7% year-over-year, with 33.4% of homes experiencing price drops. The market has clearly shifted from the frenzied seller's market of 2021-2022 to a more balanced environment where buyers have negotiating power.
Why Cash Buyers Have an Advantage in Pre-Market New Construction
Cash buyers possess several distinct advantages when approaching builders and developers with pre-market inventory:
1. Certainty of Closing
Developers face significant risk between project approval and final sales. A cash buyer's ability to close without financing contingencies provides certainty that financed buyers cannot offer. When a developer has construction loans accruing interest, knowing they have committed buyers reduces financial pressure and risk.
2. Faster Transaction Timelines
Cash transactions can close in 7-14 days once construction is complete, compared to 30-45 days for financed purchases. For developers managing multiple projects and looking to rotate capital quickly, this speed has tangible financial value that often translates into price flexibility.
3. No Appraisal Contingencies
New construction appraisals can be challenging because comparable sales may not reflect the value of newly built homes with modern features and efficiency standards. Cash buyers eliminate appraisal risk entirely, which is particularly valuable for developers building in areas with limited recent comparable sales.
4. Relationship-Based Opportunities
The 29 applications for nearly 1,000 units represent specific developers with specific projects. Cash buyers who proactively research these applications and establish direct relationships with developers can access opportunities before public marketing campaigns begin.
Geographic Breakdown: Where the New Units Will Be Located
The Voice of San Diego report indicates the building exemption applications focus on unincorporated San Diego County areas. Based on recent development patterns and county planning priorities, these areas likely include:
East County
- • Alpine
- • Lakeside
- • Ramona
- • Spring Valley (unincorporated)
North County Inland
- • Valley Center
- • Bonsall
- • Fallbrook (unincorporated)
South County
- • Bonita (unincorporated)
- • Otay Ranch areas
These areas typically offer more affordable price points than coastal San Diego communities, with median prices ranging from $650,000 to $800,000 for new construction, compared to $885,000 county-wide median.
Timeline: When These Homes Will Hit the Market
Understanding the development timeline helps cash buyers time their engagement:
| Period | Activity | Cash Buyer Action |
|---|---|---|
| Q4 2025 (Now) | Applications under county review; final approvals expected December 2025 | Research applications, identify developers |
| Q1-Q2 2026 | Site preparation and foundation work begins | OPTIMAL: Engage developers directly before public marketing |
| Q2-Q3 2026 | Vertical construction underway on early projects | Negotiate pre-completion purchase agreements |
| Q3-Q4 2026 | First completed units ready for occupancy | Traditional buyers enter market via MLS listings |
| 2027 | Majority of nearly 1,000 units completed and occupied | Pre-market advantage window closed |
Strategic Window: Cash buyers who wait until Q3-Q4 2026 when units are MLS-listed will compete against traditional buyers and lose the pre-market advantage. The strategic window is Q1-Q2 2026 when builders are receptive to direct relationships and pre-commitments.
How Cash Buyers Can Access Pre-Market Opportunities
To capitalize on this building boom, cash buyers should take these specific steps:
1. Research the Applications
The 29 applications are public records. Contact the San Diego County Department of Planning & Development Services to request:
- List of approved building exemption applications
- Developer/builder contact information
- Project addresses and unit counts
- Expected construction timelines
2. Establish Direct Developer Relationships
Reach out to developers directly, not through real estate agents. Introduce yourself as a cash buyer interested in pre-market opportunities. Key points to communicate:
- Proof of funds showing cash availability
- Interest in specific project or unit type
- Flexibility on closing timeline to match construction completion
- Willingness to purchase before public marketing
3. Prepare Documentation
Have ready:
- Recent bank statements or proof of funds letters
- Letter of intent template for developers
- Attorney or escrow company for quick transaction processing
Quick Facts About San Diego's Building Exemption
| Category | Details |
|---|---|
| Total Applications | 29 applications proposing nearly 1,000 units |
| Policy Basis | California SB 743 VMT exemption |
| Primary Location | Unincorporated San Diego County areas |
| Timeline | Applications filed November 2025, construction 2025-2027 |
| Price Range Estimate | $650,000 - $800,000 (based on area comparables) |
| Cash Buyer Advantage Window | Q1-Q2 2026 (before MLS listings) |
| Typical Pre-Market Discount | 3-7% below anticipated list price for pre-commitments |
Frequently Asked Questions
What is the San Diego County building exemption?
The building exemption allows developers to bypass vehicle miles traveled (VMT) requirements under California Environmental Quality Act (CEQA) regulations. This exemption, based on California Senate Bill 743, speeds the approval process for qualifying housing developments, particularly infill and multi-family projects.
How can I find out which builders are developing the 1,000 units?
Contact the San Diego County Department of Planning & Development Services and request the list of approved building exemption applications filed in November 2025. These are public records and should include developer names, project locations, and unit counts.
Why would a developer sell to a cash buyer before listing on MLS?
Developers value certainty and speed. A cash buyer who can commit to purchase before construction is complete reduces the developer's financial risk and holding costs. This value often translates into price concessions of 3-7% below anticipated market value.
Are new construction homes a good investment in San Diego?
New construction in growing areas can offer strong appreciation potential, especially in San Diego County where housing inventory remains constrained. New homes also have lower maintenance costs, modern energy efficiency, and builder warranties. However, location within the county and school district quality significantly impact long-term value.
Which San Diego County areas will see the most new construction?
Based on the building exemption focus on unincorporated areas, expect the most activity in East County (Alpine, Lakeside, Ramona), North County Inland (Valley Center, Fallbrook, Bonsall), and South County (Bonita, Otay Ranch unincorporated areas). These areas offer more available land and lower price points than coastal communities.
How does this compare to San Diego's existing home inventory?
The nearly 1,000 new units represent approximately 4% of San Diego County's annual sales volume (25,920 homes sold in 2024). While meaningful, this alone won't solve the inventory shortage. However, it signals a regulatory shift that could accelerate housing production significantly over the next 3-5 years.
Conclusion
San Diego County's approval of nearly 1,000 new housing units through building exemptions creates a time-sensitive opportunity for cash buyers. While traditional buyers will wait for these homes to appear on the MLS in late 2026, strategic cash buyers can engage with developers now and throughout early 2026 to secure pre-market access, better pricing, and first choice of specific units.
The combination of San Diego's constrained existing home inventory, slow sales velocity (2,385 sales in September 2025), and this new construction pipeline sets up a favorable environment for buyers who can move quickly and with certainty. Cash buyers, free from financing contingencies and appraisal requirements, are uniquely positioned to capture this value.
Ready to explore San Diego's new construction opportunities?
If you're a cash buyer interested in San Diego's new construction opportunities, or a seller looking to connect with serious buyers, contact San Diego Fast Cash Home Buyer today.
Call (619) 555-0100Citations
- 1. Voice of San Diego, "County Officials: A Building Exemption Is Giving San Diego a Housing Boost" - November 24, 2025
- 2. San Diego Union-Tribune, "Why San Diegans aren't jumping to buy homes even with lower mortgage rates" - November 18, 2025
- 3. Redfin, San Diego County Housing Market Data - October 2025
- 4. California Governor's Office of Planning and Research, Senate Bill 743 Implementation Guidelines - 2024
- 5. San Diego Association of Realtors, Annual Home Sales Data - 2023-2024