California’s housing crisis has reached a critical point, particularly in urban centers like Los Angeles. With a median home price of $888,740, according to Insta Mortgage, (significantly higher than the national median) many residents face escalating rents and limited affordable housing options.
To address this ongoing housing crisis, Senate Bill 79 has officially become state law as of October 10, 2025. The legislation permits denser residential construction near major transit hubs and is scheduled to take effect on July 1, 2026. Its phased implementation prioritizes cities undergoing rezoning, providing a legal framework to build more housing where demand is highest.
How SB 79 works
SB 79 overrides local zoning restrictions to enable the construction of multifamily buildings up to nine stories tall within a half-mile of major transit stations. Targeted urban counties include Los Angeles, Orange, San Diego, San Francisco, Alameda, Sacramento, San Mateo, and Santa Clara. The law is designed to encourage transit-oriented development and reduce car dependency. For L.A., the zoning areas were already shared to the public, and you can explore the potential building in the image below:
The law is expected to unlock thousands of parcels for development, significantly increasing the number of new housing units in transit-accessible areas. By streamlining approvals and reducing local restrictions, SB 79 aims to accelerate the construction of both affordable and market-rate housing, helping to mitigate California’s housing deficit.
Additionally, by promoting higher-density development near transit hubs, the law is anticipated to boost public transit ridership, thereby strengthening transit systems and contributing to reduced traffic congestion and carbon emissions.