By Tom Coat / SD U-T Commentary / July 31, 2026
As battles swirl around Pacific Beach’s Turquoise Tower, Midway Rising and ADU “apartment buildings,” a more fundamental concern surprisingly has been pushed to the sidelines.
For 54 years, historic Proposition D protected San Diego’s coastal communities with a 30-foot height limit. That allowed all San Diegans access to our magnificent shoreline.
In an essay published in The San Diego Union-Tribune’s Opinion section, City Council President Joe LaCava summed up Proposition D’s importance to San Diego: “San Diego’s 30-foot coastal height limit symbolizes a commitment to preserving the city’s coastal access and differentiating our valued shoreline from walled-off cities like Miami. The height limit is not only a regulatory restriction but a reflection of San Diego’s identity,” LaCava wrote.
Today, this “reflection of San Diego’s identity” has been blacked out — “voided.” All it took was a declaration of a crisis in the Legislature and bureaucratic approval. That’s so easy, it begs the question: What is the next declared crisis where votes won’t count?
The will of 64% of San Diego voters who approved Proposition D in 1972 was trashed because the state said Proposition D conflicts with developer-friendly state density bonus housing laws. Those laws, incidentally, resulted in a hugely unpopular “unintended consequence” — the 268-foot high Turquoise Tower proposal over which the city and developer are still haggling.
While it would be irresponsible to allow a luxury high-rise that adds 1,000 more daily vehicle trips on North Pacific Beach roads already carrying 400% of their intended traffic, what is being done to Proposition D should be of deep concern to every San Diegan.
In trying to address what it viewed as a housing crisis, the state chose the nuclear option of voiding votes. It had better, less extreme, options.
The state is doubling down on its attack on Proposition D with the Legislature’s consideration of SB 958, a bill that guts protections related to Midway Rising. The Peninsula Planning Group formally protested the bill, with chair Eric Law saying: “There’s no reason to have skyscrapers at the beach.”
Some 54 years after Pacific Beach resident Alex Leondis and volunteers collected 36,000 verified signatures to force a reluctant San Diego City Council to put Proposition D on the ballot, isn’t it time to find the right balance so middle-class families can become homeowners without transforming Pacific Beach into Miami Beach or voiding votes?
First, recognize that we face an affordable housing crisis, not a supply crisis.
Earlier this year, researchers at the Federal Reserve Bank of San Francisco released results of a 20-year housing study. It found that removing housing constraints — like Proposition D — had limited impact on housing prices. So why void Proposition D?
The study concluded that income inequality — not a limited housing supply — was making homes too costly for the middle class. The researchers traced a striking correlation between rising home prices and median income since 2000. They found a growing wealth gap allowed wealthier people at the top of the median income range to drive up home prices well beyond income increases for less wealthy people.
Voiding Proposition D won’t solve that. Nor will increasing housing supply so much that the Mortgage Bankers Association projects a looming glut of millions of homes.
Why not target housing affordability with economic weapons and take other common-sense actions?
Restore the critical role of local planning groups and city councils. Give these groups a chance to review proposals, but not unduly delay them. If an impasse is reached, do binding arbitration. This idea would have quickly killed the Turquoise Tower proposal, saving the city thousands of dollars — and perhaps millions more in future legal fees.
Create a coalition of the numerous groups supporting Proposition D so they can more effectively lobby and publicize solutions, such as already approved community plans that add housing.
Prioritize homes for residents and give first-time home buyers incentives so they can compete against investors/corporations.
We should also:
- Change laws to make voiding votes a difficult, last resort requiring judicial approval.
- Restore Proposition D.
- Retain San Diego’s coastal vibe — no skyscrapers.
- Give the middle class a fighting chance.
Votes should count. Our horizons should belong to everyone, not just penthouse owners.
Tom Coat is a former newspaper editor and reporter who lives in Pacific Beach. He successfully lobbied for two San Diego vacation rental ordinances and a traffic-calming roundabout on Foothill Boulevard.






I believe you have identified a key point – it is the cost of housing and not the supply that is the problem.
Real estate pricing has many components, but one of the most important is the interest rate.
The first place I ever owned was a condo in Clairemont. I bought it for $106k in 2000. It had been previously bought in 1991 for $101k. Nine years, $5,000 dollars increase in value. Interest rates had dropped from 9% to 8% in those nine years
Almost 3 years after I bought, in 2003, my neighbor sold his unit for over $200k, so I put mine up for sale and got $230k which allowed me to upgrade to a single family house, where I have remained for 23 years.
So why did that condo go from $106k to $230k in the space of 3 years ? Again it is complicated but I feel that one reason was the decrease in mortgage rates.
In 1980 the mortgage rate was 8.04%. Two years later it had climbed to 16% ! This was no doubt the result of the government response to 3 years of inflation/stagflation (1979-1981) and we experienced the worst economic downturn in the United States since the Great Depression, marked by high unemployment, severe GDP contraction, and tight monetary policies.
Year Mortgage rate My condo’s price
1980 8.04
1982 16.02
1989 10.25 $93,500
1991 9.09 $101,000
2000 8.08 $106,000
2001 7.01
2002 6.57
2003 5.89 $203,000
2007 6.40 $288,000
2018 4.70 $380,000
2021 3.15 $550,000
The current valuation is $638,351, up $88,000 since October 2021
Today’s rate is 6.28, similar to the rate in 2007 when the condo was sold for $288k
$288k @ 6.4% = payments of $1,800 (30 yr fixed)
$638k @ 6.28% = payments of $3,900 (30 year fixed)
Could mortgage rates alone account for all this ? I don’t think so. Instead, I believe I believe that real estate derivatives are the true cause of the rampant, outrageous and unjustified increases in real estate prices.
Investopedia describes them like this –
“Real estate derivatives, sometimes referred to as property derivatives, are instruments that allow investors to gain exposure to the real estate asset class without having to actually own buildings. Instead, they replace the real property with the performance of a real estate return index. In this way, investors can invest in real estate equity or debt without ever buying an actual asset or using real estate as collateral.”
The adoption of these completely severed the connection between borrowers and lenders. If you carried a mortgage during these times, how many times was your loan “sold” ? Didn’t you wonder “How are they making money selling my mortgage ?”
This was the beginning of twisting the purpose of home ownership from an integral part of American families into a wagering tool for the elite to play their financial games with.
Hyperbole ? Why would you want housing to be treated like the stock market ? What other pieces of personal property are treated this way ? What would happen to car prices if they were subject to “Automotive Derivative Investments” ?
Corporate ownership of residential property is another aspect of the “commodification” of housing. Per a 2025 report, corporations now own 8.9 percent of residential parcels in 500 counties across the US.
Consider the Blackstone Inc. With $1.2 trillion in total assets under management, it is the world’s largest alternative investment firm. Going back as far as 2019 the United Nations housing advisor accused them of “wreaking havoc in communities and helping to fuel a global housing crisis.” They’ve been active in San Diego as far back as 2021 when they purchase 66 properties making up 5,800 rental units. Three years later the stories pop up –
“Blackstone owns more than 60 apartment buildings in San Diego County and it raised rents nearly double the market average since purchasing the properties three years ago. Reports like this came from CBS8, KPBS, Fox5, NBC7, all in 2024. Even then corporate greed was identified as a major player in the affordable housing issue.
So two years later, we’re supposed to believe Todd Gloria, Scott Wiener, Gavin Newsom and the whole “one party system” gang that middle class homeowners are the ones responsible for “the housing crisis” ?
Thank God this nimby generation is on the way out. Signed OB local born and raised