San Diego Voters Reject Measure A: What the Vacant Homes Tax Defeat Means for Homeowners

What Was Measure A? Understanding the Proposed Vacant Homes Tax

Measure A, formally known as the Empty Homes Tax Ordinance, represented one of the most aggressive vacancy tax proposals among major U.S. cities. The measure would have created an annual tax on homes in the City of San Diego that were not claimed as primary residences and remained vacant for more than 182 days per year.

The Tax Structure

The financial burden would have been substantial and escalating:

• Year 1 (2027): $8,000 annual tax per vacant property
• Year 2+ (2028 onward): $10,000 annual tax per vacant property
• Corporate-owned properties: Additional $4,000-$5,000 surcharge (totaling $12,000-$15,000 annually)

According to the City of San Diego's fiscal impact analysis, approximately 5,000-5,115 properties across the city would have been subject to the tax, representing less than 1% of San Diego's total housing stock. The measure projected generating between $18.8 million and $24.3 million annually for the city's general fund.

Who Would Have Been Affected?

The tax would have applied to:

• Second homes and vacation properties left vacant more than half the year
• Investment properties between tenants or undergoing renovation
• Inherited properties during estate settlement
• Corporate-owned residential real estate

Exemptions Included

Measure A included several exemptions for:

• Active duty military members deployed most of the year
• Property owners in medical care facilities
• Homes where the owner died within a two-year period
• Properties undergoing permitted construction or repair
• Hardship cases (subject to application and approval)

Critics argued that even with exemptions, property owners would face bureaucratic hurdles proving their eligibility, creating administrative burdens alongside the financial ones.

The Election Results: Breaking Down the Vote

San Diego voters delivered a clear verdict on Measure A when polls closed on June 2, 2026. The margin of defeat exceeded most pre-election polling predictions.

Final Vote Tally

Source: San Diego County Registrar of Voters, June 2, 2026

The 12.6-percentage-point margin represented a decisive rejection, with the measure failing in both early mail-in ballots and Election Day voting. According to KPBS reporting, early returns showed an even wider margin of 58.26% against and 41.74% in favor, which narrowed slightly as additional ballots were counted.

The Path to the Ballot

The San Diego City Council voted 8-1 in early 2026 to place Measure A on the June primary ballot. Councilmember Sean Elo-Rivera championed the measure, while Councilmember Raul Campillo cast the sole dissenting vote, arguing that not all multi-property owners were wealthy enough to absorb the tax burden.

Campaign Spending Disparity

The financial resources behind the campaigns revealed stark differences:

No on Measure A Campaign:

• Total raised: Approximately $1.3-$1.4 million
• California Association of Realtors: $880,000-$1 million
• National Association of Realtors: $500,000

Yes on Measure A Campaign:

• Total raised: Approximately $300,000-$350,000
• Individual donors, unions, and progressive organizations: $102,385

The No campaign's 4-to-1 spending advantage funded extensive mailer campaigns, digital advertising, and grassroots outreach that flooded San Diego mailboxes in the weeks leading up to the election.

Geographic Impact: Which San Diego Neighborhoods Were Most Affected?

The concentration of properties that would have faced Measure A's tax burden was not evenly distributed across San Diego. Coastal and affluent neighborhoods contained the highest density of second homes and investment properties.

Neighborhoods with Highest Vacancy Concentrations

According to analysis from the San Diego Union-Tribune and NBC San Diego, more than 45% of the city's vacant and vacation rental properties were concentrated in just three areas:

1. La Jolla - High concentration of second homes and luxury vacation properties
2. Downtown San Diego - Mix of investment condos and corporate-owned units
3. Pacific Beach - Popular vacation rental and second-home market

Full Geographic Breakdown by Community

Estimates based on vacant property data from Voice of San Diego and city records

Why Coastal Areas Had Higher Concentrations

Several factors explain the geographic distribution:

• Higher property values making second-home ownership more exclusive
• Tourism appeal creating vacation rental opportunities
• Beach proximity attracting out-of-town and international buyers
• Limited supply in coastal zones driving investment interest
• Rental income potential during peak tourism seasons

Pacific Beach, for example, has long been a target for vacation property investors due to its walkable beach access, nightlife, and proximity to attractions. Similarly, La Jolla's prestigious reputation and ocean views make it a prime second-home market for wealthy buyers from across California and beyond.

What the Measure A Defeat Means for San Diego Homeowners

For Property Owners with Multiple Homes

The rejection of Measure A preserves the status quo for owners of second homes and investment properties. Without the annual $8,000-$10,000 tax burden, property owners can:

• Continue holding properties between tenant occupancies without penalty
• Maintain vacation homes for personal use without tax consequences
• Take time with renovations and improvements without vacancy pressure
• Manage estate properties without rushed timelines

For owners with multiple investment properties, the defeat represents significant annual savings. An investor holding three vacant properties, for example, would have faced $30,000 in annual taxes under Measure A—equivalent to several months of mortgage payments on each property.

Impact on the Rental Market

Proponents of Measure A argued the tax would incentivize owners to rent vacant properties, increasing rental inventory and potentially lowering rents. With the measure's defeat, this market intervention won't occur.

However, San Diego's rental market is already experiencing significant shifts in 2026. According to Kidder Mathews' Q1 2026 multifamily report, San Diego's vacancy rate reached 5.4-5.7%, the highest since 2009, driven by over 6,200 new units delivered in 2025 and another 4,000 projected for 2026. Average asking rents have remained flat at approximately $2,417-$2,520 per month, with some areas experiencing declines.

This suggests that market forces—new construction supply—are already addressing rental availability without taxation interventions.

For Cash Buyers and Real Estate Investors

The Measure A defeat creates a more favorable investment environment for cash buyers and investors:

1. No holding cost penalties - Investors can acquire properties without concern about vacancy taxes during renovation periods
2. Portfolio flexibility - Multi-property investors avoid compounding annual tax burdens
3. Fix-and-flip opportunities - Properties undergoing substantial renovation won't face $8,000-$10,000 annual penalties
4. Estate acquisitions - Purchasing inherited properties from heirs offers more time for strategic decisions
5. Market timing - Investors can hold properties for optimal market conditions without tax pressure

For cash home buyers specializing in distressed properties, estate sales, or fix-and-flip opportunities, the absence of vacancy taxation removes a significant barrier to acquisition and holding strategies.

Signals About Voter Sentiment

The 56.5% rejection of Measure A reveals important insights about San Diego voter attitudes:

• Property rights concerns - Voters resist government intrusion into property usage decisions
• Tax fatigue - Reluctance to create new tax mechanisms despite housing challenges
• Enforcement skepticism - Questions about implementation costs and administrative burdens
• Economic concerns - Fears about unintended consequences on property values and market stability

This continues a pattern in San Diego of voters rejecting tax measures, as noted by 10News analysis following the election.

How San Diego's Decision Compares to Other Cities with Vacancy Taxes

San Diego's rejection of Measure A places it in a different category than several major cities that have implemented vacancy taxes. Understanding how these programs have performed elsewhere provides context for San Diego's decision.

Vancouver's Empty Homes Tax

Vancouver, British Columbia implemented an Empty Homes Tax in 2017, starting at 1% of assessed value, increasing to 1.25% in 2020, and reaching 3% in 2021.

Results:

• Vacant properties decreased by 54% from 2016 to 2021 (5,355 fewer vacant units)
• Only 979 homes were vacant in 2024, down 94 from 2023
• Generated $194.3 million in revenue for social housing programs
• However: No measurable impact on average rents despite increased housing availability

Vancouver's program achieved its goal of reducing vacancies but failed to improve affordability—a key argument San Diego opponents used to challenge Measure A's effectiveness.

Toronto's Vacant Home Tax

Toronto passed a Vacant Home Tax in 2021 at 1%, increasing to 3% in 2023. The program is newer and long-term impact data remains limited.

Oakland, California

Oakland has a vacant property tax, though it's structured differently with properties considered occupied if used just 50 days per year—a much lower threshold than San Diego's proposed 183-day requirement.

Comparative Table: Vacancy Tax Programs

San Diego's proposed flat-fee structure differed from percentage-based approaches elsewhere, creating unpredictable burdens especially for lower-value properties.

What Happens Next? San Diego Housing Policy After Measure A

With Measure A defeated, San Diego's housing challenges remain. The city faces an estimated cumulative housing shortage of 90,000 units despite recent increases in construction activity.

Alternative Approaches the City May Consider

1. Zoning reforms - Continued implementation of the Land Development Code amendments to enable mid-rise and mixed-use development
2. Incentive-based programs - Tax credits or incentives for property owners who rent vacant units rather than penalties
3. Streamlined permitting - The Permit Now program that has enabled 6,746 new housing units
4. Transit-oriented development - Density bonuses near transit corridors to maximize new construction
5. Public-private partnerships - Collaborative affordable housing development projects

Market Forces Already at Work

Several market dynamics are addressing housing availability without policy interventions:

• Record construction pipeline: 4,000+ units projected for delivery in 2026
• Increasing vacancy rates: Rising to 5.4-5.7%, above historical norms
• Rent stabilization: Flat or declining rents in many neighborhoods, part of San Diego's housing reset
• New affordable housing: Programs delivering thousands of income-restricted units

These trends suggest the market is already responding to supply constraints through traditional development activity.

Will Vacancy Taxes Return to the Ballot?

The decisive 12.6-percentage-point margin makes a near-term return of vacancy tax proposals unlikely. Proponents would need to address voter concerns about enforcement, economic impact, and property rights before reconsidering a similar measure.

Councilmember Sean Elo-Rivera and other supporters may pivot to alternative housing policy approaches that enjoy broader public support.

Frequently Asked Questions

The Bottom Line for San Diego Homeowners

The rejection of Measure A on June 2, 2026 represents a significant decision point for San Diego's housing policy direction. Voters chose to reject a tax-based intervention in favor of maintaining property rights and avoiding new administrative burdens.

For homeowners across San Diego—from the coastal communities of Pacific Beach and La Jolla to inland neighborhoods like North Park and City Heights—the defeat means the status quo continues. Property owners maintain full control over how they use their homes without government-imposed vacancy penalties.

For those considering selling, particularly owners of investment properties, second homes, or inherited real estate, the current environment offers flexibility. Cash buyers and investors continue to provide viable options for homeowners who want quick, certain transactions without the complications of traditional listings.

As San Diego addresses its housing challenges through alternative approaches—zoning reforms, streamlined permitting, and market-driven construction—understanding how policy decisions affect your property value and sale options remains essential. The Measure A vote demonstrates that San Diego voters prefer market-based solutions over taxation mechanisms when addressing housing availability.

Whether you're managing an investment portfolio, handling an estate property, or simply reconsidering your long-term real estate strategy, the defeat of Measure A clarifies the regulatory landscape for San Diego property ownership in 2026 and beyond.