National Law Review: ‘San Diego ADU Incentive Rollback Sheds Light on California Housing Woes’ - OB Rag

San Diego ADU Incentive Rollback Sheds Light on California Housing Woes.

On June 16, 2025, the San Diego City Council voted 5-4 to cap the number of Accessory Dwelling Units (ADUs) that can be built on single-family lots.

On June 16, 2025, the San Diego City Council voted 5-4 to cap the number of Accessory Dwelling Units (ADUs) that can be built on single-family lots.

The decision reverses the City’s 2020 implementation of a program allowing developers to build a nearly unlimited number of ADUs—a robust incentive previously heralded as a solution to the City’s burgeoning housing affordability crisis.

This program rollback reflects local jurisdiction’s struggles in addressing the lack of affordable housing supply and meeting Housing Element requirements while facing stark community opposition to high-density development.