Landmark California Housing Reform: What Homeowners Should Know
- On June 30, 2025, Governor Gavin Newsom signed two major housing bills (AB 130 and SB 131)
- They mark one of the biggest changes to California’s housing policy in decades
- These new laws limit the power of CEQA, the California Environmental Quality Act, which has long been used to delay or block housing projects
- By streamlining approvals for most urban housing, these laws aim to address what Newsom calls “a crisis of supply” and stimulate a construction boom
What Changed
- Many housing projects in existing urban areas will no longer require full environmental review under CEQA
- Projects that miss one or two CEQA criteria will only need to address those issues, rather than undergo a full-scale review
- Minimum parking requirements near public transit have been reduced or removed to allow more efficient use of space
- The overall goal is to make housing faster and cheaper to build
Why Homeowners Should Care
- You may start to see more construction activity in your neighborhood over the next few years, especially on underused or larger lots
- Under SB 9, a 2021 California law, single-family homeowners (that qualify) are allowed to split their lot and build up to four units, two homes on each resulting parcel
- If your property qualifies under SB 9 or ADU rules, it may now be faster and easier to move forward with building
- This could increase the value and flexibility of your property, whether you're considering adding a rental unit, redeveloping, or selling to a developer.
Want to learn how recent changes might affect your long-term real estate strategy? Let’s set up a time to talk through what’s happening locally and what buyers are looking for.
