Clairemont & College Area: 31,750 New Homes Guide 2026

Published December 17, 2025 | By SD Cash Buyer Team

On Tuesday, December 17, 2025, the San Diego City Council approved sweeping community plan updates that will fundamentally transform two established neighborhoods. The Clairemont and College Area community plans, approved in 7-1 votes, authorize property owners to build an additional 31,750 homes across both neighborhoods—the first comprehensive overhaul of these plans in more than 30 years.

For the 80,000 residents of Clairemont and the thousands living near San Diego State University in the College Area, this decision marks the beginning of a decades-long transformation. With state law SB 79 taking effect July 1, 2026, enabling 5-6 story apartment buildings within half a mile of trolley and bus rapid transit stops, homeowners face a critical decision: sell before multi-year construction begins or navigate years of development uncertainty.

The Numbers: Breaking Down 31,750 New Homes

Clairemont Community Plan: 14,000 Additional Units

The Clairemont Community Plan Update increases housing capacity from 38,800 homes to 52,800 homes—a 59% increase that adds capacity for 14,000 new residential units.

Key development zones include:

  • Balboa Avenue trolley station corridor: 65-foot height limits (approximately 5-6 stories)
  • Clairemont Town Square: Mixed-use village transformation with retail, apartments, and public plazas
  • Balboa and Genesee intersection: Large commercial properties rezoned for high-density residential
  • Clairemont Drive commercial corridor: Community villages with apartments, offices, and gathering spaces

According to city planning documents, Clairemont's population could grow from 80,000 to approximately 119,000 residents over the next 30 years—a 49% population increase in a neighborhood built for single-family homes in the 1950s and 1960s.

College Area Community Plan: 17,750 Additional Units

The College Area Community Plan Update is even more aggressive, quadrupling housing capacity from 8,200 units to 34,450 units—an increase of 17,750 homes.

Primary development corridors include:

  • College Avenue: High-density mixed-use development, particularly at the College Avenue and Montezuma Road intersection
  • El Cajon Boulevard: Increased density near College Avenue with dedicated rapid transit lanes
  • Montezuma Road: Transit-oriented development with bus rapid transit lanes
  • SDSU perimeter: Student housing and mixed-use developments

The area's population could surge to as many as 74,000 residents in the next 30 years, according to city staff reports—a 322% housing increase that will fundamentally alter the neighborhood's character.

Map showing Clairemont and College Area community plan boundaries with 31,750 new homes approved

Clairemont and College Area community plan areas showing approved development zones

What is SB 79 and How Does it Enable 5-6 Story Buildings?

Understanding California's Transit-Oriented Development Law

California Senate Bill 79, signed into law by Governor Gavin Newsom on October 10, 2025, represents a seismic shift in local zoning control. The "Abundant and Affordable Homes Near Transit Act" takes effect July 1, 2026 and establishes statewide zoning standards that supersede local regulations.

Key Provisions of SB 79

The law permits apartment buildings up to 6 stories tall (65 feet or more) in single-family zoned neighborhoods within a half-mile radius of:

  • Trolley and light rail stations (including San Diego MTS Blue Line stations in Clairemont)
  • Bus rapid transit (BRT) stops
  • Major transit hubs with frequent service

According to Cox Castle legal analysis, SB 79 applies specifically to "urban transit counties" including San Diego County, and developers meeting certain requirements can build mid-rise apartments up to 9 stories in the highest-tier transit areas.

How SB 79 Supersedes Local Zoning

Critically, SB 79 preempts local government control of land zoning near transit. While the Clairemont and College Area community plans establish density guidelines, SB 79 can override these plans in transit-adjacent areas.

For Clairemont homeowners living within half a mile of the Balboa Avenue trolley station, this means:

  1. Single-family zoning no longer protects against multi-family development starting July 1, 2026
  2. Developers can build 5-6 story apartments on properties previously restricted to single-family homes
  3. Cities cannot deny projects meeting SB 79 requirements without facing Housing Accountability Act penalties

As Allen Matkins law firm notes, beginning January 1, 2027, local governments denying SB 79 projects in high-resource areas will be presumed to have violated state housing law and face significant penalties. Learn more about San Diego's zoning changes and their impact on property owners.

Which Streets Are Affected? Mapping the Transformation

Clairemont Development Corridors

Homeowners on or near these streets face the highest likelihood of nearby construction:

Balboa Avenue (entire corridor): The primary commercial spine of Clairemont will see 65-foot height limits enabling 5-6 story mixed-use buildings. Large shopping centers will be transformed into "community villages" with thousands of apartment units.

Genesee Avenue (commercial zones): Major intersections with Balboa Avenue will see high-density redevelopment. The plan includes shrinking vehicle lanes to add bicycle-only and bus-only lanes.

Clairemont Drive (commercial corridor): Retail properties will transition to mixed-use developments with ground-floor commercial and residential above.

Morena Boulevard: The plan envisions narrowing vehicle lanes to accommodate bus-only lanes and bicycle infrastructure, with adjacent properties seeing increased density.

College Area Development Corridors

College Avenue (entire length): The namesake corridor will see the most dramatic transformation, particularly at the College Avenue and Montezuma Road intersection where city planners approved increased density in later drafts.

El Cajon Boulevard (near College Avenue): High-density development with dedicated rapid transit lanes and shared bus-bike lanes to accommodate right-of-way constraints. Properties along this corridor will see lower density in high fire-risk areas but higher density in the busy zone near College Avenue.

Montezuma Road (SDSU to College Avenue): Dedicated rapid transit lanes will be constructed along this corridor, with transit-oriented development encouraged within walking distance of SDSU.

Collwood Boulevard: Proposed rapid transit lanes will spur development along this connector street between College Avenue and Montezuma Road.

Half-Mile Transit Radius: The SB 79 Zone

Homeowners should measure their distance from the nearest trolley or BRT stop. Properties within half a mile (approximately 2,640 feet or 10-12 city blocks) fall under SB 79's provisions starting July 2026.

For Clairemont residents, this includes significant areas around the Balboa Avenue trolley station (existing) and the proposed new trolley station in the community plan.

For College Area residents, rapid bus transit stops along Montezuma Road, College Avenue, and El Cajon Boulevard create multiple half-mile radius zones covering most of the neighborhood.

Map showing half-mile radius zones around transit stops in Clairemont and College Area affected by SB 79

SB 79 half-mile transit zones where 5-6 story buildings will be permitted starting July 2026

Impact on Property Values During Construction

Short-Term Property Value Suppression

Multiple studies demonstrate that construction activity negatively impacts nearby property values. Research on noise barriers found that construction disturbances caused a 6% decrease in house prices in the short run, with an even stronger 11% negative impact in the long run.

Construction noise is particularly damaging to residential property values:

  • Heavy machinery can reach 120 decibels, comparable to a thunderclap
  • Jackhammers reach 130 decibels, causing physical discomfort even blocks away
  • Studies show that railway noise (similar in intensity to major construction) causes a 1.79% decrease in property value for every 1dB increase above 55dB

For homeowners on Balboa Avenue or College Avenue facing multi-year construction of 5-6 story buildings, the cumulative impact could be substantial.

Market Psychology: Uncertainty Drives Down Demand

Real estate professionals note that "uncertainty is something buyers don't want." When potential buyers visit properties surrounded by active construction or facing imminent rezoning, several factors suppress demand:

  1. Noise distraction: Construction disrupts property showings, creating negative first impressions
  2. Future uncertainty: Buyers cannot visualize the final neighborhood character
  3. Perceived risk: Concerns about extended construction timelines and additional developments
  4. Reduced buyer pool: Many buyers specifically seek stable, established neighborhoods

According to HomeLight's analysis of selling houses with noise issues, homeowners in noisy areas struggle to attract a wide range of interested buyers, affecting their ability to secure favorable sales prices.

The 10-20% Proximity Discount

Location experts have quantified the impact of disruptive nearby features. Los Angeles appraisers report that sellers near freeways (generating constant noise similar to major construction zones) experience 10-20% lower valuations than comparable homes several blocks away.

For a Clairemont homeowner with a $950,000 property (San Diego's current median according to Zillow), a 10-15% construction-related discount could mean:

  • 10% reduction: $95,000 lower sale price ($855,000 instead of $950,000)
  • 15% reduction: $142,500 lower sale price ($807,500 instead of $950,000)
  • 20% reduction: $190,000 lower sale price ($760,000 instead of $950,000)

Long-Term Appreciation Potential vs. Near-Term Risk

The community plans envision a 30-year buildout timeline. While completed transit-oriented developments can eventually increase property values through improved amenities and walkability, homeowners must endure:

  • Years 1-5 (2026-2031): Initial wave of large project approvals, demolitions, and foundation work
  • Years 6-15 (2032-2041): Peak construction activity as multiple projects proceed simultaneously
  • Years 16-30 (2042-2056): Continued infill development and neighborhood stabilization

San Diego's current housing market data shows the median home price at $985,000 (October 2025), down 2.5% year-over-year, with homes selling in 25 days. In a softening market, construction-related uncertainty compounds normal market pressures.

Homeowner Decision Framework: Sell Before or Wait?

Who Should Consider Selling Before Construction Begins?

Homeowners facing the highest risk from the community plan changes include:

1. Properties Within 1-2 Blocks of Major Corridors

If your home is on or immediately adjacent to Balboa Avenue, College Avenue, El Cajon Boulevard, or Montezuma Road, you will experience direct construction noise and traffic disruption, dramatic neighborhood character changes, maximum impact on daily quality of life, and highest difficulty selling during construction years.

2. Retirees and Empty-Nesters Seeking Stability

Homeowners age 60+ who value peace and quiet should seriously consider selling before 2027. The 30-year buildout timeline means potentially spending your entire retirement navigating construction zones.

3. Families with Young Children

Construction sites pose safety concerns, and constant noise disrupts sleep schedules and remote learning. The College Area plan's population quadrupling will strain schools and infrastructure.

4. Homeowners Planning to Sell Within 5-7 Years Anyway

Real estate professionals advise that selling before construction begins eliminates the risk of being "crunched to sell" when the clock is ticking, forcing you to accept much lower offers.

Who Might Benefit from Waiting?

1. Property Owners on Large Lots Near Transit

If you own a property within the SB 79 half-mile radius on a lot larger than typical single-family parcels, your land could become highly valuable to developers. Zoning consultants note that properties zoned for high-density residential use may be worth significantly more to developers than single-family comparables.

2. Younger Homeowners with 20+ Year Horizons

If you're in your 30s or 40s with stable employment and can tolerate construction disruption, the completed transit-oriented developments could eventually boost property values through improved walkability and amenities.

3. Landlords and Investors

Rental property owners may benefit from increased rental demand as construction workers and new residents seek housing during the buildout period.

The Cash Buyer Advantage: Certainty in Uncertain Times

Traditional home sales involve listing preparation (1-2 months), marketing period (25-41 days per current San Diego data), buyer financing contingencies (30-45 days), inspection negotiations and potential deal collapse, with a total timeline of 3-6 months.

With SB 79 taking effect July 1, 2026, and the first projects likely approved by early 2027, homeowners have a narrow window to sell before construction impacts become visible to all buyers.

Cash home-buying companies offer solutions by purchasing homes regardless of zoning restrictions or upcoming changes, allowing sellers to bypass rezoning concerns and sell quickly.

How Cash Buyers Help Homeowners Facing Development Uncertainty

The Traditional Sale Challenge in Transitioning Neighborhoods

When College Area residents raised concerns about "street capacity" and infrastructure strain at the December 17 City Council meeting, they articulated what potential homebuyers will echo: uncertainty about the neighborhood's future.

Traditional buyers in 2026-2027 will demand significant discounts to compensate for construction risk, request extended inspection periods to assess nearby development plans, include contingencies that allow them to back out if major projects are approved nearby, and negotiate aggressively knowing sellers face limited alternatives.

Why Cash Buyers Are Different

Cash home buyers like SD Cash Home Buyer specialize in properties facing uncertainty:

1. No Financing Contingencies

Cash buyers don't rely on bank appraisals that factor in construction impacts. They evaluate properties based on current condition and location, not speculative future scenarios.

2. Fast Closings (7-14 Days)

Research shows that cash buyers offer flexible closing dates, allowing homeowners to coordinate transitions without temporary housing needs. Close before major construction announcements impact perceived value.

3. As-Is Purchases

No need to invest in repairs or upgrades to compete with other listings. Cash buyers purchase homes in current condition, recognizing that renovation investments make little sense before neighborhood transformation.

4. Certainty and Simplicity

Selling to cash companies eliminates the uncertainty of contingent offers, potential delays, and deals falling through. Non-contingent offers provide a straightforward, fast sale process.

The Trade-Off: Speed vs. Maximum Price

Financial advisors acknowledge that cash buyers' offers are typically below fair market value, reducing overall profit. However, this calculation changes when facing construction-related discounts of 10-20% if you wait 1-2 years, carrying costs (mortgage, taxes, insurance, maintenance) while the market softens, and opportunity costs of not redeploying equity into a stable neighborhood.

For a $950,000 Clairemont home:

  • Cash offer today: $855,000 (10% below market, immediate closing)
  • Traditional sale in 2027: $807,500 (15% construction discount after 18 months of carrying costs and market softening)
  • Net advantage to selling now: $47,500 + eliminated stress and uncertainty

If you're concerned about negative equity or declining property values, acting before construction begins may protect your investment.

Case Study: Selling Before Rezoning Takes Effect

Consider a College Area homeowner three blocks from the College Avenue and El Cajon Boulevard intersection:

Current situation (December 2025):

  • Property value: $875,000
  • Single-family zoning, quiet residential street
  • Strong buyer demand (San Diego median 25 days on market)

Projected situation (July 2027, one year after SB 79 takes effect):

  • Three major projects approved within two blocks
  • Construction noise from 8am-5pm weekdays
  • Street parking eliminated for construction staging
  • Traditional buyers offering $750,000-$787,500 (12-15% discount)
  • Days on market extended to 60-90 days

Cash buyer option (closing January 2026):

  • Offer: $840,000 (4% below current market)
  • Closing: 10 days
  • No repairs, no contingencies, no uncertainty
  • Homeowner relocates before construction impacts
  • Preserves $52,500-$90,000 versus waiting for 2027 traditional sale
Graph showing property value impact during construction phases in Clairemont from 2026-2035

Projected property value impact during construction phases (2026-2035) vs. selling before construction begins

What Homeowners Should Do Now

Immediate Actions (December 2025 - March 2026)

1. Determine Your SB 79 Status

Measure your property's distance from the nearest trolley station or rapid bus stop. Use Google Maps to draw a half-mile radius (0.5 miles = 2,640 feet). If you're within this zone, SB 79 permits 5-6 story development starting July 1, 2026.

2. Research Approved Projects

Contact the City of San Diego Planning Department to request information about approved or proposed developments within a quarter-mile of your property. Large projects require environmental review, creating public records.

3. Attend Community Planning Group Meetings

The Clairemont Community Planning Group and College Area Community Planning Group review all development applications before they reach the Planning Commission. Meetings are public and provide early warning of upcoming projects.

4. Get Property Evaluations

Obtain valuations from traditional real estate agents (market value estimates), cash home buyers (guaranteed offers), and property tax assessor records (baseline comparative data). Comparing these numbers reveals your options and negotiating position.

Strategic Timeline (2026-2027)

January-June 2026: Prime selling window before SB 79 takes effect. Buyers don't yet see approved projects or construction impacts.

July 2026: SB 79 becomes law. Expect surge in development applications over following months.

Fall 2026: First SB 79 projects approved. Market psychology begins shifting as buyers recognize transformation is underway.

2027: Construction begins on earliest projects. Property value impacts become measurable.

Decision-Making Questions

  1. How long do you plan to stay in your current home? (If less than 10 years, selling before construction may be optimal)
  2. What is your tolerance for noise, traffic, and disruption? (Retirees and families typically have lower tolerance)
  3. Do you need maximum sale price or certainty? (Cash buyers trade higher price for guaranteed closing)
  4. Is your property attractive to developers? (Large lots near transit may appreciate despite construction)
  5. What are your financial cushions? (Can you afford 10-20% value decline if construction depresses prices?)

Frequently Asked Questions

When will construction actually begin in Clairemont and College Area?

The community plans were approved December 17, 2025, but actual construction timelines vary by project. Large developments require environmental review (6-12 months), Planning Commission approval (3-6 months), building permits (3-6 months), and financing (6-12 months). Expect the first projects to break ground in late 2026 or early 2027, with peak construction activity from 2028-2035. However, city planning documents envision a 30-year buildout through 2055.

Can I stop development near my home?

No. Once community plans are approved and SB 79 takes effect July 1, 2026, property owners have the legal right to develop according to zoning regulations. Homeowners can participate in community planning group meetings and provide input during environmental review periods, but cannot prevent development that complies with approved plans and state law.

Will my property taxes increase due to rezoning?

California's Proposition 13 limits property tax increases to 2% annually based on your purchase price, not current zoning or market value. Rezoning does not trigger reassessment. However, if you sell and a new owner purchases at a higher price (reflecting development potential), their property taxes will be based on that higher purchase price.

How do I know if a cash offer is fair?

Compare cash offers to recent comparable sales in your neighborhood, traditional real estate agent market analyses, and San Diego's median home price trends (currently $985,000 for single-family homes). Cash offers typically range from 5-15% below market value. Calculate whether this discount is acceptable given avoided agent commissions (5-6%), no repair costs, faster closing timeline, and certainty versus risk of construction impacts. Reputable cash buyers provide written offers with clear price explanations.

What happens to schools and infrastructure with 31,750 new homes?

The community plans include infrastructure improvements: Clairemont gets 14 new parks, bus-only lanes, bicycle infrastructure, and one new trolley station; College Area gets a new park, dedicated rapid transit lanes, and enhanced fire safety measures. However, residents raised concerns about library capacity and street infrastructure at the December 17 Council meeting. Schools are funded separately through San Diego Unified School District, which collects developer fees for new construction but faces ongoing enrollment challenges.

Can I develop my own property under the new plans?

If your property is located in designated higher-density zones (near transit corridors, along major streets, or in community village areas), you may be eligible to redevelop. However, most single-family homes are on lots too small for economically viable multi-family development, construction costs of $300-500 per square foot make small projects challenging, rezoning processes can take 12-18 months, and financing multi-family development requires significant capital and experience. Many homeowners will find selling to developers more practical than developing themselves.

How does SB 79 differ from the community plans?

The community plans are local San Diego regulations establishing density, building heights, and land use for each neighborhood. SB 79 is state law that supersedes local zoning within half a mile of major transit. Community plans apply to entire neighborhoods, reflect local input, and vary by location. SB 79 applies only near transit, is mandated by state law, and is uniform across California. In areas where both apply (like near Balboa Avenue trolley), SB 79's provisions take precedence if they allow greater density than local plans.

Will apartment buildings lower my property value permanently?

Research shows mixed results. Transit-oriented developments can increase property values through improved walkability, retail amenities, and transit access. However, during construction (years 1-10), values typically decline 6-20% due to noise, disruption, and uncertainty. After completion (years 10-20), values may recover as neighborhoods stabilize. Long term (years 20-30), well-designed mixed-use neighborhoods can command premiums. The critical variable is execution quality. Studies of noise barriers found construction impacts lasted longer than expected, with 11% negative price effects persisting in the long run—suggesting recovery is not guaranteed.

What if I want to sell but my home needs repairs?

Cash buyers purchase homes 'as-is,' meaning you don't need to make repairs before selling. This is particularly valuable when repair costs would exceed the value they add (common in transitioning neighborhoods), you lack capital to invest in upgrades, timeline pressure makes repairs impractical, or deferred maintenance (roof, HVAC, foundation) would scare traditional buyers. Traditional buyers in transitioning neighborhoods already demand discounts for construction impacts. Adding repair requirements compounds this, potentially making your home unsellable at acceptable prices.

How do I contact SD Cash Home Buyer for a property evaluation?

SD Cash Home Buyer provides free, no-obligation property evaluations for homeowners in Clairemont, College Area, and throughout San Diego County. The process includes: (1) Initial consultation via brief phone call or online form describing your property and situation, (2) Property evaluation reviewing comparable sales, zoning status, and current market conditions, (3) Written cash offer with guaranteed purchase price and proposed closing timeline, (4) Your decision with no pressure to accept, and (5) Fast closing in as little as 7-14 days if you accept.

Sources

  1. KPBS. "Clairemont, College Area poised for growth under new community plans." December 17, 2025. Link
  2. San Diego Union-Tribune. "A 'missed opportunity'? San Diego OKs sweeping neighborhood plan for College Area, more modest vision for Clairemont." December 16, 2025. Link
  3. Times of San Diego. "City of San Diego signs off on first update to College Area Community Plan in over 30 years." December 16, 2025. Link
  4. NBC 7 San Diego. "Newsom signs SB 79 allowing dense housing along transit areas." October 10, 2025. Link
  5. Cox Castle. "Governor Signs SB 79, A Landmark Housing Bill." Link
  6. Allen Matkins. "Governor Newsom Approves SB 79: High-Density Transit-Oriented Housing Development Projects." Link
  7. San Diego Union-Tribune. "20,000 new homes, 14 new parks and one new trolley station: Clairemont blueprint clears key hurdle." November 22, 2025. Link
  8. iNEWSource. "A guide to San Diego's College Area community plan update." November 9, 2025. Link

Facing Community Plan Changes in Clairemont or College Area?

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