Midway Rising San Diego 2026: Point Loma Cash Buyers

San Diego's Midway Rising Moves Forward Despite Legal Setback

The transformational Midway Rising project is advancing toward groundbreaking in late 2026, even after the California Supreme Court restored the 30-foot height limit on December 30, 2025. The $3.9 billion development will deliver 4,254 apartments—including 2,000 affordable units representing California's largest affordable housing project—a 16,000-seat arena, and 14 acres of public space across 49 acres in the Midway District.

Developers face a critical December 4, 2026 deadline to finalize their lease with the city, while City Council approval is expected in early 2026. This compressed timeline creates a unique window for property owners in surrounding neighborhoods—Point Loma, Ocean Beach, Bay Park, and Mission Bay—to make strategic decisions about their real estate holdings before construction transforms the district.

How Density Bonus Law Overrides Height Restrictions

Despite the Supreme Court's ruling upholding the 30-foot coastal height limit, Midway Rising plans to proceed using California's density bonus law. This state legislation allows developers to waive local restrictions—including height limits—when projects include sufficient affordable housing units.

With 2,000 of the 4,254 units designated as affordable (far exceeding state requirements), the project qualifies for maximum density bonuses. San Diego Assemblymembers David Alvarez and former representative Lorena Gonzalez expanded these bonuses from 25% to 100% above local zoning through AB 2345 (2020) and AB 1287 (2023). A 2022 court ruling further strengthened the law by eliminating requirements for developers to prove waivers are necessary for project viability.

Mayor Todd Gloria and City Attorney Heather Ferbert confirmed the project will advance under density bonus provisions, stating they are "not standing still" despite disagreeing with the height limit ruling.

The 2026 Relocation Window: Opportunities for Sellers and Buyers

The December 2026 lease deadline and anticipated late-2026 groundbreaking create urgency for homeowners in adjacent neighborhoods. The 14-year construction timeline for this massive development will bring sustained noise, traffic disruption, and neighborhood transformation—factors motivating some property owners to consider selling before work begins.

For sellers facing time-sensitive relocation needs, San Diego cash home buyers offer distinct advantages: 7-14 day closings eliminate carrying costs and timing uncertainty. Traditional listings requiring 30-60 day closes create risk when construction timelines accelerate unexpectedly.

Neighborhood property values show mixed signals. Point Loma Heights median prices reached $912,000 (up 5% year-over-year), while Midway District homes average $644,579 with 28 days on market. The development's promised $178 million in annual local spending could boost long-term values, but short-term construction impacts remain uncertain.

Neighborhood-by-Neighborhood Impact Analysis

Point Loma Heights: This neighborhood sits directly adjacent to the Midway District and will experience the most immediate construction impact. Current median home prices of $912,000 represent 5% year-over-year appreciation, but proximity to 14 years of heavy construction presents both risks and opportunities. Properties within a half-mile radius may see temporary value suppression during active construction phases (2026-2032 for the arena and initial residential towers), followed by potential appreciation once the district transformation completes. Homeowners should consider their tolerance for sustained construction noise, increased traffic on Rosecrans Street and Sports Arena Boulevard, and temporary disruption to local businesses.

Ocean Beach: Located approximately 1.5 miles west of the Midway site, Ocean Beach properties have shown recent price volatility with an 8% decline in 2025. The neighborhood's beach-adjacent lifestyle may insulate it from Midway Rising's direct construction impacts, but increased traffic on Sunset Cliffs Boulevard and West Point Loma Boulevard during construction commutes could affect quality of life. The development's completion could eventually enhance Ocean Beach's appeal by adding thousands of new residents within a short drive, potentially supporting local retail and restaurant sectors. However, the interim period (2026-2030) presents uncertainty that some property owners may choose to avoid.

Bay Park: Positioned north of the Midway District across Interstate 8, Bay Park residents will primarily experience traffic impacts rather than direct construction noise. The neighborhood's access points via Morena Boulevard and West Morena Boulevard will likely see increased congestion during construction phases. Property values in Bay Park have remained stable, and the area's family-friendly character may appeal to future Midway Rising residents seeking nearby single-family neighborhoods. Long-term appreciation potential exists once the development completes and adds thousands of new area workers and residents.

Mission Bay/Pacific Beach Corridor: These neighborhoods east of Interstate 5 will experience minimal direct impact but could benefit from Midway Rising's economic ripple effects. The $178 million in projected annual local spending will support restaurants, entertainment venues, and retail throughout the greater area. Property owners here face less immediate disruption but should monitor how the development affects regional traffic patterns and property tax assessments as the city recalibrates valuations based on the transformed Midway District.

Construction Timeline Breakdown: What to Expect Phase by Phase

Phase 1 (2026-2028): Arena Construction - The 16,000-seat arena will be built first to replace the aging Pechanga Arena. This initial phase will involve the heaviest demolition and foundation work, with pile driving, excavation, and steel erection creating the most significant noise and traffic impacts. Property owners in Point Loma Heights and Roseville-Fleet Ridge should expect peak disruption during this period. Early morning construction hours (starting at 7 AM under city permits) and truck traffic on Rosecrans will be most intense.

Phase 2 (2028-2032): Initial Residential Towers - Following arena completion, developers will begin the first residential buildings, focusing on the 2,000 affordable housing units that enable the project's density bonus approvals. This phase involves continuous crane operations, material deliveries, and worker traffic. Neighborhoods should expect 4-5 years of sustained mid-level construction activity as multiple towers rise simultaneously.

Phase 3 (2032-2036): Market-Rate Housing - The project's market-rate apartments (approximately 2,254 units) will follow, with construction intensity remaining high but infrastructure largely complete. By this phase, the arena will be operational, and early residential buildings will be occupied, creating a mixed environment of construction zones and active residential areas.

Phase 4 (2036-2040): Final Buildout - The concluding phase includes retail spaces, parks, and public amenities. Construction impacts will be lighter and more localized, but the full 14-year timeline means property owners deciding to stay must commit to a decade and a half of neighborhood transformation.

The strategic window is Q1-Q2 2026—before Council approval finalizes and construction preparations intensify. Property owners in Roseville-Fleet Ridge, Bay Park, and Ocean Beach should evaluate whether the coming transformation aligns with their long-term plans or creates an opportune exit point.

FAQ: What Property Owners Should Know

When will Midway Rising construction actually begin?

Groundbreaking is anticipated in late 2026, pending City Council approval expected in early 2026 and final lease negotiations due by December 4, 2026. The new arena will be constructed first, followed by the residential phases extending over 14 years through approximately 2040.

How does this affect property values in Point Loma and Ocean Beach?

Short-term impacts remain uncertain due to construction disruption, while long-term projections suggest value increases from the development's $178 million annual local spending and neighborhood transformation. Point Loma Heights already shows 5% year-over-year appreciation to $912,000 median prices.

Can I sell quickly if I want to relocate before construction starts?

Yes. Cash buyers specializing in the Midway, Point Loma, Ocean Beach, and Bay Park areas can close in 7-14 days, providing certainty for sellers who want to exit before the December 2026 lease deadline and subsequent construction preparations begin. Traditional listings typically require 30-60 days and carry timing risk if construction schedules accelerate.

Take Action Before the December Deadline

With City Council approval expected in early 2026 and the December 4, 2026 lease deadline approaching, property owners in the Midway corridor have a limited window to make strategic decisions. Whether you're considering relocation before construction begins or evaluating long-term investment potential, understanding your options now—before the project finalizes—provides maximum flexibility.

For homeowners in Point Loma, Ocean Beach, Bay Park, Mission Bay, or the Midway District seeking fast, certain sales with flexible timelines, contact us for a cash offer that eliminates timing uncertainty during this transitional period.