"By far the most attention in this fall's California legislative session went to Gov. Gavin Newsom's plan for a special redistricting election early in November to counteract a Texas move aiming to convert Democratic House seats there into Republican ones. However, another new law just signed by Newsom will eventually prove far more consequential to the future of California cities."
"The problem is that it probably won't do that soon because the vast majority (about 70%) of units being built are to be rented or sold at market rates rather than seeking occupancy as subsidized affordable housing. Given that well more than half of all California renters pay higher than 30% of their income for housing, relatively few can afford what are called market rates. So thousands of units built in the last three years now lie vacant, while shortages persist elsewhere."
Senate Bill 79 will enable transit-oriented upzoning that permits up to nine-story buildings near major transit stops, with heights tapering into two- and three-story construction extending toward single-family areas. The law will apply in eight urban counties, including Los Angeles, San Francisco, Sacramento, Santa Clara, Alameda, San Mateo and San Diego. Multi-unit apartment construction fell about 20% statewide this year as projects often require $4,000–$5,000 in monthly rent to break even. About 70% of recent units are market-rate, leaving many unaffordable to renters who frequently spend over 30% of income on housing, resulting in vacancies amid persistent shortages. SB 79 could increase long-term density but is unlikely to quickly resolve affordability.
Read at www.mercurynews.com
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