California is on the verge of its most significant housing reform in decades. On September 12, 2025, lawmakers approved Senate Bill 79 (SB 79), officially titled the Abundant and Affordable Homes Near Transit Act. Authored by Senator Scott Wiener, the bill now awaits Governor Gavin Newsom’s signature. If enacted, it will override restrictive local zoning and reshape how housing is built around the state’s transit systems.
For decades, land around train stations, subways, and rapid bus corridors was zoned primarily for single-family homes or low-density use. This mismatch kept housing supply far below demand in the very places where infrastructure and mobility were strongest. SB 79 directly addresses that imbalance by requiring cities to allow greater housing density near public transit.
A New Framework for Housing Growth
At the core of SB 79 is a tiered zoning system linked to proximity to transit. The closer a site is to major rail stations, subway hubs, or high-capacity bus corridors, the more housing local governments must allow. Exact thresholds differ by transit type and distance, but in all cases, the new rules are far more permissive than most local zoning codes.
Crucially, projects that meet these standards will qualify for streamlined, ministerial approval, meaning they can bypass lengthy rezonings and lawsuits that historically stalled development.
Safeguards and Exemptions
To secure political support, SB 79 includes multiple tenant protections. Developers cannot demolish rent-controlled or recently occupied housing unless they provide strong relocation and compensation measures. The law also exempts certain areas:
- Very high fire-risk zones
- Historic districts
- Sensitive coastal areas
Local governments may propose their own transit-oriented plans, but these must permit at least as much housing as the state minimum. In addition, labor standards were added to secure union backing, which proved decisive in the bill’s passage.
Implementation Outlook
Although the legislature has approved the bill, its implementation timeline will depend on administrative rollout. The law is set to take effect for local governments starting in July 2026, giving cities time to align their planning rules. Housing officials expect the first wave of projects under the new framework to emerge within the following two to three years.
Why It Matters for Prices
California’s housing crisis is among the most severe in the United States. By mid-2025, the median home price reached nearly $900,000 (€770,000), according to the California Association of Realtors. Average monthly rents were $2,600–2,800 (€2,200–2,400) statewide, with much higher figures in Los Angeles and San Francisco.
Experts caution that SB 79 will not immediately slash prices. Construction costs remain elevated, financing is expensive, and labor shortages persist. Still, the bill reduces zoning risk and cuts approval delays, making projects more financially feasible. Over time, that could increase supply in precisely the neighborhoods where demand is strongest — near transit corridors.
Political Debate
Reactions reflect California’s sharp housing politics.
Senator Scott Wiener described SB 79 as a historic step toward reducing car dependence, lowering emissions, and aligning housing with transit investment. Advocacy groups such as YIMBY Action argue that the measure could unlock “hundreds of thousands” of new homes.
Opposition has been strongest in Los Angeles, where the City Council voted against the measure. Councilmember Traci Park called it a “one-size-fits-all mandate,” warning it could accelerate gentrification and weaken local planning authority, despite tenant safeguards.
Where Development Could Begin
Analysts predict that early projects will cluster around high-demand transit nodes:
- Los Angeles Metro’s B and D subway lines along Wilshire and Vermont
- Bay Area BART stations in Oakland, Berkeley, and San Francisco
- San Diego trolley corridors tied to recent extensions
These areas already attract investor interest, and the removal of zoning barriers could accelerate previously stalled projects.
Lessons from Elsewhere
California’s approach mirrors and diverges from other reforms:
- Oregon and Washington passed laws eliminating exclusive single-family zoning statewide, though not tied to transit.
- New York City pursues rezonings along subway corridors, but approval remains slow and political.
- International models: Tokyo demonstrates how dense housing near transit can stabilize prices — average condos cost around ¥60 million (≈ €360,000), with monthly rents of €1,200–1,500. Paris remains far costlier at roughly €12,000 per m² despite high density, while Berlin’s rent caps keep prices low but have discouraged new construction.
California’s choice is market-driven: it removes zoning barriers to enable private developers, rather than relying on direct rent regulation.
The Bottom Line
SB 79 represents the boldest shift in California housing law in decades. It ties housing growth directly to transit infrastructure, limits local governments’ ability to block projects, and sets measurable state standards. The law will not transform affordability overnight, but it lays a framework for cities that grow upward instead of outward, reduce car dependence, and expand housing options over time.
For millions of Californians squeezed by soaring rents and home prices, SB 79 signals a state willing to confront the zoning rules that long kept supply far below need.
