San Diego County Treasurer-Tax Collector Larry Cohen is not reaching for the property tax hike button, at least not right now. He is arguing that the region’s affordability crunch is really the payoff from a decades-long failure to build enough homes, combined with strict local limits on growth.
Cohen told reporters the county has “added jobs faster than houses,” a recipe for permanently tight supply. High construction costs and slow permits, he said, only deepen what he described as a kind of built-in scarcity for anyone trying to rent or buy, per 10News.
What Cohen Told Reporters
Cohen, who was sworn in as treasurer in November, told 10News that “we have a chronic housing undersupply,” and reminded viewers that San Diego is geographically sandwiched by the ocean and the mountains. In other words, there is not exactly endless land waiting to be built on, which makes any simple, tax-only fix a lot less simple.
For now, Cohen said his policy advice will center on reviewing regulations and trying to boost the number of homes being built before he recommends any changes to property tax rates.
What the Minneapolis Fed Found
That stance puts him slightly at odds with one prominent model of the problem. A study by NYU economists, summarized by the Federal Reserve Bank of Minneapolis, suggests that if California lifted its property tax rate to something like Texas levels, home prices could drop by roughly 18 percent, with younger households more likely to become homeowners as a result.
Cohen has urged caution with that kind of thought experiment, noting that statewide models do not fully capture San Diego’s physical constraints or its notorious permitting bottlenecks.
Budget Cuts And Housing Demand
The supply crunch is colliding with shrinking public support for low-income renters. Local officials say the situation has worsened as federal housing dollars have dried up. NBC 7 San Diego reported a roughly $300 million shortfall in federal funding, and the County Housing Commission has closed its Section 8 voucher waitlist in response.
Housing advocates warn that when subsidy capacity falls like that, low income renters are pushed back into an already tight private market. That pressure is one reason local leaders are weighing both ways to accelerate homebuilding and whether they need new revenue tools at all.
Permitting, ADUs And Local Fixes
Inside City Hall and at the county level, attention has increasingly zeroed in on permits and the types of housing that actually get built. Voice of San Diego reports that accessory dwelling unit, or ADU, permit applications exploded from 266 in 2018 to 1,909 in 2024 after state-level reforms eased the rules. For local officials, that surge is the clearest proof so far that targeted changes to regulations can quickly unleash new units.
The county has also tried to keep some affordable projects alive through its own budget decisions. As supervisors redirected $2 million last year into the Infill Housing Trust Fund, they framed the move as a stopgap way to keep construction moving while bigger policy fights over housing and revenue continue.
What To Watch Next
Cohen said his office will lead with analysis of local rules and overall housing supply before it weighs in on any major tax shifts. To prepare for that work, the Treasurer-Tax Collector’s office has already added senior staff, announcing a top appointment in early January.
According to the Treasurer-Tax Collector's Office, Cohen will serve through the current term and plans to run for a full term in 2026, setting him up to be a central voice in what promises to be a long, politically charged debate over how San Diego tackles its housing crisis.
