A downtown Santa Barbara parking lot will soon be transformed into the city’s first new five-story building in more than 80 years, a project developers say will help address the area’s housing shortage.
The development, located on De la Guerra Street across from Elsie’s Bar, will include 44 market-rate housing units, 77 parking spaces and a neighboring four-story self-storage building with a basement. Construction is already underway, with completion expected by June.
Some nearby workers and residents say they support adding housing but worry about affordability and congestion.
Elsie’s Bar, a longtime neighborhood fixture that has served the community for more than three decades, sits directly across the street from the project site.
“I think it’s nice to have more housing for people, but people are already struggling to pay rent, so I hope it’s reasonably priced,” said Dmitry Fillinove, a bartender at Elsie’s Bar.
Fillinove expressed concerns about parking once new residents move in.
“This is already a busy block, so I imagine if a hundred new people are moving in, parking is going to be a disaster,” he said.
Developers say the project is designed to expand housing options in Santa Barbara, where limited supply and high costs have made it difficult for many residents to find places to live. The units will be available to the general public, though pricing and leasing details have not yet been released.
Megan House, Chief Financial Officer at Frank Schipper Construction, said the company aims to respond to long-standing housing needs in the city.
“We try and do projects like this so we can help with the housing situation,” House said. “As people get older, they need safe, clean and nice places to stay, so I’m really excited for the people that get to move in.”
The project marks a rare addition to Santa Barbara’s downtown skyline, reflecting the city’s gradual shift toward higher-density development as officials seek to balance growth with preservation.
