California lawmakers have passed Senate Bill 79, a measure designed to encourage denser housing development near transit hubs in the state’s largest metro areas. Authored by Sen. Scott Wiener (D-SF), the bill now awaits Gov. Gavin Newsom’s signature.
SB 79 would allow apartment developers to build residential structures up to 75 feet tall near train, subway, and light rail stations, overriding local zoning rules that previously limited density. Supporters say the law targets the state’s dual crises of housing shortage and financially strained public transit agencies.
“Decades of overly restrictive policies have driven housing costs to astronomical levels, forcing millions of people away from jobs and transit and into long commutes from the suburbs,” Wiener said. “Today’s vote is a dramatic step forward to undo these decades of harm, reduce our most severe costs, and slash traffic congestion and air pollution in our state.”
The legislation also gives transit agencies more control over adjacent land, potentially generating revenue—similar to models used in East Asian cities. However, SB 79 applies only to counties with at least 15 passenger rail stations, including Alameda, Los Angeles, San Diego, Orange, Santa Clara, Sacramento, San Francisco, and San Mateo.
Some city officials are cautious about the bill’s local impact. Berkeley Planning Director Jordan Klein said the city has yet to fully assess the law’s implications, while housing advocate Darrell Owens expects limited effects in Berkeley, where downtown and Southside neighborhoods already allow taller developments. “Will it result in a construction boom? I doubt it,” Owens said. “I think you’re just going to see, every now and then, [more] apartments and condos near BART stops.”
The bill’s path to passage was long and contentious, with 13 rounds of amendments designed to appease labor groups, affordability advocates, and cities concerned about local authority. Certain provisions now require union labor on some projects, mandate at least 7% of units for lower-income residents, and protect existing rent-controlled apartments.
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Some opponents fear the bill could reshape low-rise neighborhoods. Susan Kirsch, founder of Catalysts for Local Control, called it a “devastating impact,” citing “extreme seven-story buildings next to single-family homes with nothing that the community can do about it.”
Despite objections, housing advocates hailed SB 79 as historic. Brian Hanlon, CEO of California YIMBY, said: “We won many victories over the past eight years, but the dream of passing a robust, transit-oriented development program has long eluded us, until now.”
Economists caution, however, that the law’s effects will be gradual. Simon Büchler, who studies upzoning policies, explained: “Supply increases take time (often many years) to materialize, even in the right places, so these policies are far from an overnight solution.”
Developers also note practical challenges: land scarcity, high construction costs, and economic pressures like tariffs and high interest rates could limit how many new projects actually get built near transit stations. Mott Smith, a California developer, predicted: “We will probably see in the next five years 20 to 30 SB 79 projects around the state, that’s my wild guess. Both the opponents and the proponents of the bill are probably overstating how much this is going to change the built environment in California.”
Even so, supporters see the legislation as a key step toward making housing more accessible, reducing reliance on cars, and supporting transit agencies, all while fostering transit-oriented communities in California’s urban cores.
Originally reported by Ben Christopher, Cal Matters in Berkeleyside.
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