National City's 94-Unit Union Tower Apartments Target Housing Shortage

National City, California is moving forward with a major affordable housing project meant to chip away at a stubborn regional housing shortage. The Union Tower Apartments, a 94-unit complex at 2312 F Avenue, is scheduled to open in summer 2026, and the city unveiled final details in late February 2026. For homeowners watching property values and local tax dollars, it is a clear sign that San Diego County's affordability crunch is driving real construction, not just policy debate.

What Union Tower Adds to National City

The project, developed by the nonprofit Wakeland Housing and Development Corporation in partnership with the City of National City, will consist of two buildings — one four stories, one seven — with 94 apartments reserved for households earning between 30% and 60% of San Diego County's Area Median Income. Twenty-four of those units are set aside specifically for veterans who have experienced homelessness.

Residents will have access to a computer lab, on-site laundry, outdoor decks, BBQ and picnic areas, and shared common spaces. Wakeland is also bringing supportive services on site, including financial counseling, job assistance, computer training, and mental health care aimed at the veteran residents. The location sits near multiple bus routes, a regional rail station, and a public park and community center within half a mile — a deliberate choice that reflects National City's tight footprint and its emphasis on transit-oriented development.

Why the City Is Building Now

National City has struggled to keep up with state-mandated housing targets. According to reporting from KPBS in October 2025, the city has produced more than 300 low-income homes so far this cycle — above 50% of its goal — but remains thousands of units behind on the highest-income tier and must add thousands more by 2030 to comply with Regional Housing Needs Assessment (RHNA) requirements. Between July 2024 and June 2025 alone, the city issued more than 100 building permits, including 35 accessory dwelling units (ADUs).

Mayor Ron Morrison has pointed out that densely populated cities like National City — about 56,000 residents on a small land base — get outsized RHNA targets because they sit near jobs and transit. That is part of why so many of the city's new units are vertical, affordable, and near rail.

Funding the Project

Union Tower is being financed with an $8 million loan from the National City Housing Authority's Housing Fund and a $1.5 million loan from HUD's HOME Investment Partnerships Program, plus state and tax-credit sources typical for affordable deals. Public layering like this is standard for projects serving households below 60% of AMI, where market rents cannot cover construction costs.

What It Means for Nearby Homeowners

If you own property in National City or neighboring South Bay communities, a 94-unit addition is not going to single-handedly move comparable sales, but several secondary effects are worth tracking:

• Infrastructure investment. Projects of this scale typically come with sidewalk, lighting, and landscaping improvements along the frontage, which tend to lift block-level curb appeal.
• Transit and retail demand. Denser housing near the trolley supports the small businesses that anchor local home values.
• ADU tailwinds. The city's strong ADU permit numbers show National City is approving granny flats and garage conversions at a healthy clip. Homeowners considering an ADU will find an active permitting environment and, in some cases, state and local grants to help with soft costs.
• Property tax base. Affordable projects receive partial tax relief, but market-rate activity around transit stations usually grows the overall tax base over time.

What to Watch Next

National City is expected to continue approving mid-rise infill near transit to meet its 2030 obligations. Homeowners who want a say should track Planning Commission and City Council agendas, where density bonuses, parking reductions, and zoning overlays get decided. For homeowners interested in building an ADU or applying for first-time buyer or rehab assistance tied to the city's housing fund, the National City Housing Authority is the starting point.

Union Tower will not solve the shortage on its own. But when it opens this summer, it will be one of the most visible examples of how a small, land-constrained California city is trying to.