Newsom Signs Bold Housing Bill — Accelerating Affordability in California

California Gov. Gavin Newsom signs Senate Bill 79 into law during a ceremony at the State Capitol in Sacramento on Oct. 10, 2025, surrounded by legislative leaders, housing advocates, and construction workers. (Photo by Anne Wernick, Office of the Governor)

Sacramento, CA - October 10, 2025 – Governor Gavin Newsom signed Senate Bill 79 (SB 79) into law on Friday, a landmark measure aimed at slashing California's notorious housing costs by streamlining denser development near public transit hubs, overriding local zoning restrictions that have long stymied affordability efforts.The bill, which takes effect July 1, 2026, builds on a slate of "historic" 2025 reforms that have already fast-tracked thousands of new units, positioning the state to meet its ambitious goal of 2.5 million additional homes by 2030 amid a crisis where median home prices top $800,000 statewide.

SB 79 empowers developers to build up to four stories of apartments—potentially housing 100 units per acre—within a half-mile radius of major transit stops, such as BART stations in the Bay Area or Metro Rail in Los Angeles, without needing local approvals that often drag projects into years-long battles.Sponsored by Senate Majority Leader Mike McGuire (D-Healdsburg), the legislation targets "opportunity zones" near high-frequency transit, projecting it could unlock 500,000 new units over the next decade by reducing permitting times from 18 months to under six.

"This is about cutting red tape and putting roofs over heads—now," Newsom said in a signing ceremony at the Capitol, flanked by housing advocates and developers. "We've already streamlined approvals for 1.2 million homes this year; SB 79 supercharges that momentum to make California livable for working families."The governor highlighted how the bill aligns with earlier 2025 wins, like AB 2011, which expedited environmental reviews, and SB 423, mandating local governments to zone for 20% more density in urban cores.

Yet the measure drew fire from some Democrats and NIMBY groups, who argued it erodes local control and could exacerbate gentrification in transit-rich, low-income neighborhoods.Assemblymember Buffy Wicks (D-Oakland), a key supporter, countered that affordability mandates—requiring 20% of new units as below-market-rate—will prevent displacement, potentially adding 100,000 affordable homes by 2035.California YIMBY, a pro-development nonprofit, celebrated the signing as a "game-changer," estimating it could lower rents by 15% in targeted areas over five years.

The law arrives as California's housing shortage—pegged at 3.5 million units by the state Department of Housing and Community Development—forces 180,000 residents annually to leave for cheaper states, per U.S. Census data.With interest rates hovering at 6.5% and inventory at historic lows, experts like those at UC Berkeley's Terner Center predict SB 79 could inject $50 billion into the economy through construction jobs alone.

Newsom signed a package of 12 bills Friday, including measures on climate tech and tenant protections, but SB 79 stands out as the capstone to his housing legacy. As one advocate put it, "This isn't just policy—it's a lifeline for the American Dream in the Golden State."