California Governor Gavin Newsom has signed into law a historic bill that paves the way for the construction of more housing—specifically apartments—near busy transit hubs, a move that is expected to alleviate the state’s dire shortage of homes.
“All Californians deserve an affordable place to live—close to jobs, schools, and opportunity,” the Democratic governor said in a statement after signing the bill, which state Senator Scott Wiener sponsored.
“Housing near transit means shorter commutes, lower costs, and more time with family. When we invest in housing, we’re investing in people—their chance to build a future, raise a family, and be part of a community,” Newsom added.
What Does This New Landmark Legislation Say?
The legislation, Senate Bill (SB) 79, overrules local zoning to boost development in busy areas of the Golden State, allowing developers to build tall apartment and condo buildings of up to nine stories in single-family areas near certain transit stops. That includes every stop on the San Diego Trolley and the Sprinter.
Formally known as the Abundant and Affordable Homes Near Transit Act, the law allows projects within a quarter mile of transit stops to be six stories tall and projects between a quarter mile and half mile away to be five stories tall.
The legislation is restricted to eight highly urbanized counties—including Los Angeles, San Diego, Orange, Santa Clara, Alameda, Sacramento, San Francisco and San Mateo—and certain transportation stops—including train, subway, light rail and high-frequency bus routes with designated lanes.
It also requires that a certain share of the new housing be subsidized with rent restrictions, giving cities the option to adjust and increase these requirements.
The bill is set to come into effect on July 1, 2026.
Wiener described the bill as a “historic step toward tackling the root cause of California’s affordability crisis.” In a statement he shared after Newsom signed the bill into law last week, the state Senator said: “In California we talk a lot about where we don’t want to build homes, but rarely about where we do—until now.
“SB 79 unwinds decades of overly restrictive land use policies that have driven housing costs to astronomical levels, forcing millions of people to move far away from jobs and transit, to face massive commutes, or to leave California entirely.”
According to Wiener and the bill’s supporters, the new legislation will not only alleviate the state’s housing shortage but also reduce traffic congestion and carbon emissions by bringing people closer to the hubs where they live and work.
How Do Californians Feel About SB 79?
The state Senate and Assembly narrowly approved the law last month. Unsurprisingly, the bill has proved controversial in California, a state known for the strong influence of its “not in my backyard” movement. NIMBYism has long opposed new housing development to protect property values, quality of living, traffic levels and neighborhoods’ characters.
“SB 79 overrides well-thought-out housing plans people have spent years developing,” Pacific Beach resident Marcella Bothwell, the chair of the state’s Neighbors for a Better California—a group that advocates for the preservation of single-family neighborhoods—told the San Diego Union-Tribune. “It’s a top-down mandate that kills local control.”
Leaders of North County coastal cities have also opposed the legislation, with Encinitas Mayor Bruce Ehlers writing in a letter to the state on September 18: “This latest overreaching effort forces cities to approve transit-oriented development projects near specified transit without regard to the community’s needs, environmental review or public input.”
Los Angeles Mayor Karen Bass was also among the bill’s opponents, urging Newsom last month to veto the legislation.
Bass said the bill would “erode local control, diminish community input on planning and zoning, and disproportionately impact low-resource neighborhoods.”
Critics have also described the legislation as a state land grab that pushes local authorities to the side—criticism that Newsom has rejected.
On X, the governor’s press office wrote: “No, it does not supersede local control as some have falsely claimed. No, it is not one-size fits all. And no, this is not some ‘land-grab’ by the state. This action sets the state up for success in addressing the affordability and building crisis happening right now!”
Loading twitter content…
Backing Newsom is a new movement that has emerged and strengthened in recent years: “yes in my backyard.” YIMBY supports denser housing development in the state as a solution to California’s housing affordability crisis and inventory shortage.
Brian Hanlon, the CEO of the group California YIMBY, which sponsored the bill, hailed SB 79 as a “decisive action to fight our housing shortage and climate crisis.” He said in a statement, “There is still more work to be done, but Governor Newsom just sent a clear message that California is ready to build a more affordable, sustainable, and prosperous future for everyone.”
What Happens Next
It will likely take years after the bill goes into effect for the new housing to be built in California, especially as U.S. homebuilders are currently withdrawing from the market because of growing economic uncertainty and supply headwinds across the country.
The bill’s effects are expected to vary wildly depending on how much housing development cities already have near their transit stops. According to the San Diego Union-Tribune, cities such as Santee and El Cajon could face the biggest changes.
