Thousands are on the waiting list for this Encinitas community. Only 40 homes remain

Encinitas had such a restrictive anti-housing law six years ago that the state threatened legal action.

Things have changed, slowly, with new denser housing developments approved, and demand might be highest for the agriculture-themed Fox Point Farms. There are around 2,500 people on an interest list for just 10 townhouses that will go on sale this month.

The 21.5-acre development was approved in late 2020 with 250 homes, a 3-acre farm, brewery, a farm-to-table restaurant, market and a community center. Restaurants at the site have gotten most of the attention, but it also is one of the rare new for-sale housing developments in San Diego County.

Developer Shea Homes releases its contemporary farmhouse-style homes in batches, which includes townhouses that range from $765,000 to more than $1 million. On Monday, the development was releasing five new homes to prospective buyers who have been prequalified and on an interest list for potentially years.

“We’ll sell five by the end of the night,” said Paul Barnes, president of the Shea Homes’ San Diego division. “I’d be surprised if there’s one left.”

All buyers, so far, have purchased homes six to 12 months before they were built with limited marketing by Shea. The development’s Haven Farm + Table 120-seat restaurant has received considerable attention, which has views of homes being built. Using seasonal greens from the onsite garden, the restaurant also has locally caught seafood and other items from area farms and ranches.

There are tradeoffs for living at Fox Point Farms, especially if you own more than one car. One-bedroom residences come with one garage parking spot, and two-bedrooms have two garage spots. That’s different than many recent townhouse developments in many San Diego County neighborhoods, which often come with an uncovered parking spot in addition to a garage.

Guest parking is limited, especially with the popularity of the restaurant and market. A special event was being held for moms and toddlers the day when The San Diego Union-Tribune visited and there was no parking left in the lot, leading to many guests parking in nearby neighborhoods.

Barnes acknowledged some frustration among new residents about the parking, but also said Fox Point has the same issue as many new dense townhouse communities — residents using garages for extra storage and parking cars elsewhere.

Regardless, San Diego housing analyst Gary London said Fox Point Farms is the kind of development desperately needed in the county. Rather than shoehorn an ADU development at the end of a cul-de-sac, or putting a tall residential tower in the middle of a single-family neighborhood, Fox Point Farms is a limited density development that allows people to live in a highly desirable neighborhood.

“That is exactly what we need,” London said.

Fox Point Farm’s three-story townhouses don’t tower over surrounding single-family homes as much as you might see in, for example, North Park, where 20-story apartment buildings have gone up next to single-story homes. London argued developments like Fox Point Farms are needed across the county in existing neighborhoods to meet housing needs.

Fox Point Farms is across the street from the Encinitas Ranch Golf Course at the corner of Quail Gardens Drive and Leucadia Boulevard. The two closest single-family homes to the development for sale are on the market for $5.2 million and $4.5 million. In the past six months, single-family homes nearest to Fox Point Farms have sold from $3.1 million to $3.3 million.

Homes in Fox Point Farms are clearly a less expensive option to live in Encinitas, and only about a mile from the beach. The ocean can be seen from parts of the development, and some homes have views to the ocean. The median sales price for a resale condo was $715,000 in San Diego County in October, CoreLogic said, not far off from Fox Point Farms’ least expensive model.

Townhouse sizes for properties still being sold range from 704-square-feet for the $765,000 model to 1,057-square-feet for its $998,000 model. There are 28 different floor plans in the development, ranging from one story to three stories. Shea Homes sales people said buyers have come in all age groups but tend to skew toward younger families.

There will eventually be even more people at the development that would normally not be able to live in Encinitas. Forty residences at Fox Point Farms were sold to low-income housing provider Chelsea Investment Corporation and turned into subsidized housing for individual renters making roughly $50,000 a year and under. Rents are from $1,098 to $1,342, based on income level, and were selected by lottery. A website set up for the process said rents were subject to change.

There are also a few non-human residents at Fox Point Farms who live on the farm, including chickens, two alpacas, a cow, three goats and some cats. They aren’t available for residents to walk up to whenever they want, but typically are made available for feedings on weekends when the farm does tractor tours for kids.

Construction is ongoing on a community center for residents with room for a mailroom, tutoring space, golf simulator, pool, gym and outdoor yoga space.

Fox Point Farms recently became part of a wellness designation pilot program, called WELL from the International WELL Building Institute. It’s a bit like the LEED program for buildings that give credit for environmentally friendly aspects. WELL awards communities that enhance health and wellbeing.

One aspect that gives Fox Point health points is crops sold by the farm in a community market. However, don’t expect a discount — an 8 ounce package of lettuce was on sale for $7 this week.

The project was developed by Nolan Communities. Its managing partner, Brian Grover, lives on the property with his family. Fox Point Farms did face some community opposition when it was approved related to traffic. The site was previously home to one single-family home and several greenhouses.

Shea Homes, which was in charge of the residential portion of the development, estimates the total project cost to be  $230 million. Construction started in late 2023 and is expected to be totally done by summer 2026.