San Diego’s leading cause of homelessness is its soaring housing prices. According to U.S. News & World Report Real Estate, San Diego’s cost of living is 44% higher than the national average, with rents alone calculated at 136% more. Most striking, payscale.com ranked Americas Finest City as the most expensive city in the nation to live in 2023–2024, measuring income levels against out-of-control inflation.
In response to San Diego’s housing crisis, Father Joe’s Villages launched Turning the Key in 2019 – an ambitious initiative to build 2,000 units of affordable and permanent supportive housing. Fueled by the reality that the only solution to homelessness is a place to call home, they have since made notable progress, opening seven residential communities with five more planned.
Last year, Father Joe’s Villages San Diego was the only affordable housing developer in San Diego awarded $7.5 million from the U.S. Department of Housing and Urban Development (HUD) for early-stage financing – a testament to its success as an affordable housing developer. Unfortunately, in early 2025, HUD abruptly rescinded this critical funding during a wave of federal budget cuts. In a chain reaction, the State of California then pulled its $4 million commitment contingent upon the initial $7.5 million. Totaling $11.5 million, this loss threatened to halt several projects to help end homelessness in San Diego, like the ones pictured here – 17th & Commercial, Rancho Del Oro and 901 Pier View.
Tested by the perfect storm of government funding cuts, inflation, and economic uncertainty, Father Joe’s Villages’ 75-year legacy of philanthropy will ensure the organization remains whole and able to provide its continuum of care for our most vulnerable neighbors. Visit my.neighbor.org to learn more about its impact on the community and how you can join its community of supporters.
