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Military Housing on Navy Land in San Diego: Why the Push to Build for Service Members Matters

By Hedda ParashosNovember 6, 2026

Congress is pushing to include dedicated military housing in San Diego's Navy data center redevelopment. With the city's cost of living nearly 50% above the national average and military housing waitlists already long, what happens on that 70-acre parcel has real consequences for thousands of local residents and the broader rental market.

Congress is pressing the Navy to include dedicated housing for service members in its redevelopment of a major San Diego base property. If that push succeeds, it could add meaningful housing supply to a city where military families already face long waitlists and rents that most service member pay grades can't comfortably cover.

The Project: Naval Base Point Loma's Old Town Campus

In January 2024, the Navy announced the selection of Manchester Financial Group and Edgemoor Infrastructure & Real Estate as the potential master developer for the approximately 70.3-acre Naval Base Point Loma Old Town Campus. The plans call for new commercial, residential, and transportation facilities on that land. What the original proposal did not include, according to Congressman Scott Peters, was housing reserved for the service members who actually need it.

Peters has publicly advocated for the project to include dedicated san diego military housing, describing it as a reasonable ask given the circumstances. San Diego's cost of living runs close to 50% above the national average, and existing military housing providers already operate with long waiting lists. Building residential units on Navy land without setting some aside for service members would miss an obvious opportunity.

Why San Diego Military Housing Is So Hard to Find

This isn't a new problem. San Diego hosts one of the largest concentrations of military personnel in the country, with major installations spanning from Coronado to Miramar to 32nd Street. The demand for affordable housing near those bases has outpaced supply for years.

A junior enlisted service member earns a Basic Allowance for Housing (BAH) based on their pay grade and dependency status. In San Diego, even that allowance often falls short of average market rents, which puts families in a bind from the day they receive orders here. Without enough on-base units, many service members compete directly with civilian renters, which puts upward pressure on rents in neighborhoods across the city, including areas near La Jolla and surrounding communities.

If the Old Town Campus redevelopment adds dedicated military units, it draws some of that demand out of the private rental market. That matters to civilian renters and landlords alike.

What This Means For You

• If you own rental property near any San Diego military installation, the outcome of this project is worth watching. Added military housing supply could modestly soften demand in adjacent rental markets.

• Investors evaluating multifamily assets near bases should factor in BAH rates as a pricing floor, since service members with housing allowances represent stable, consistent tenants.

• Homeowners in Point Loma and nearby areas may see infrastructure and transportation improvements tied to the Old Town Campus redevelopment, which can support property values over time. Find out what your home is worth →

• For anyone tracking San Diego's overall housing supply, this project is a test case for whether public land redevelopments can serve workforce needs alongside commercial goals.

The Old Town Campus project is still in early stages, and the question of military housing inclusion hasn't been settled. But the congressional pressure is real, and the need is documented. How it resolves will tell us something about the city's priorities as it redevelops scarce public land. If you are thinking through how San Diego's housing market shifts affect your buying or selling plans, our team is glad to talk it through. Tell us your budget, timeline, and priorities, and we will help you build a La Jolla neighborhood shortlist.

Frequently Asked Questions

What is BAH and how does it affect San Diego military housing?

Basic Allowance for Housing (BAH) is a monthly payment the military provides to service members who don't live in government quarters. In San Diego, BAH rates are set at a level intended to cover local rental costs, but rising market rents have made it difficult for many service members to find housing within that allowance. That gap is part of why dedicated on-base or on-Navy-land housing remains such a priority here.

How does military housing demand affect San Diego's rental market?

San Diego has tens of thousands of active-duty personnel who need housing. When on-base inventory falls short, those service members rent in the private market, which adds competition and upward pressure to rents across the city. Any significant addition of dedicated military housing supply would reduce that competition, which could have a modest stabilizing effect on rents in surrounding neighborhoods.

Is the Naval Base Point Loma Old Town Campus redevelopment finalized?

No. As of early 2024, the Navy had selected a potential master developer, Manchester Financial Group and Edgemoor Infrastructure & Real Estate, but the project remains in development. The inclusion of dedicated military housing is still being advocated for at the congressional level and has not been confirmed as part of the final plan. Residents and investors should follow updates from the Navy and local representatives as the project moves forward.

Source: yahoo.com