Maybe it was the re-election of Donald Trump and the electorate’s ire over inflation. Maybe it was the surprise success of a book about permitting reform among liberal elites. Maybe it was just the cumulative crush of California’s unaffordability.
Whatever the cause, 2025 was the year that California’s Democratic lawmakers finally got serious about building.
In the summer, state lawmakers passed a law exempting most urban apartment developments from the threat of environmental litigation. A few months later, they passed a bill green-lighting apartment buildings near major public transit stops over local objections. Both bills are aimed at pushing the state to build its way out of a chronic housing shortage, both are longtime items on the “Yes in my backyard” movement’s wishlist and both were gleefully signed by Gov. Gavin Newsom. Other, less high-profile legislation aimed at speeding up construction also sailed through both chambers this year.
Let the era of abundant housing begin? Probably not. This year’s historic policy shift may push in that direction, but high interest rates, unpredictable tariffs and lofty labor costs are pushing in the other. Plus, it just takes a long time to build stuff.
Despite the boom year in pro-construction bills, it was a bit of a legislative bust for those seeking immediate help with the cost of housing. The legislative year didn’t offer much for existing renters. Nor did it take up a proposed bond measure meant to top-up one of the state’s affordable housing funds. Though affordable housing producers secured a long-sought-after boost in federal support from President Trump’s signature spending bill, the administration also aims to slash spending on permanent housing for the homeless.
2026 outlook
That all gives lawmakers plenty to pick back up in 2026. The question of whether to take the bond back up in time for the November election is likely to dominate the debate in January. YIMBYs aim to push forward more cost-cutting measures for development and tenant rights group will likely call again for tighter rent caps and tenant protections. But as Election Day nears, the appetite for controversial votes tends to wane.
