Housing Market Cools as Voters Reject Vacancy Tax and Water Project Nears Completion
How this was made Verified AI
Every Intellegix briefing is generated from that day's broadcast and run through automated checks before it publishes — with a human paged on any flag. Here is the trail for this edition.
San Diego's housing market is showing signs of normalization after years of pandemic-era extremes. Active inventory in North County is up 24% year-over-year, with homes sitting on the market for roughly 37 days. North County median prices are still rising, but at a modest 4.5% year-over-year pace. The 30-year fixed mortgage rate sits in the low-to-mid 6% range, down about half a point from a year ago and expected to ease gradually through the end of 2026.
County-wide, the picture remains uneven: single-family home inventory stands 34% below the 10-year average, keeping that segment in sellers' territory, while attached properties such as condos and townhomes are seeing above-average inventory and modest price softness — a potential opening for first-time buyers priced out of detached homes.
San Diego voters dealt a clear rebuke to one housing intervention on June 2nd, rejecting Measure A — a proposed vacant homes tax — with 58% voting no. The measure would have charged $8,000 annually starting in 2027 for properties left vacant more than 182 days per year, affecting roughly 5,100 homes, or less than 1% of city properties. Opponents outspent supporters 9-to-1, arguing the tax would harm property rights and potentially discourage investment; some economists also questioned whether vacancy taxes actually increase housing supply.
Infrastructure investment is advancing in East County, where a $950 million Advanced Water Purification Program is nearing completion in Santee near Santee Lakes on Fanita Parkway. The facility — described as California's first surface water augmentation project using indirect potable reuse — is expected to produce up to 11.5 million gallons of purified water daily starting in late 2026. Purified water will travel 10 miles to Lake Jennings, serving up to 400,000 residents across Padre Dam, Helix Water District, Lakeside Water District, and northern Otay Water District, potentially meeting up to 30% of East County's drinking water needs.