The political landscape in California is experiencing notable shifts as state lawmakers take a more pro-development stance on housing legislation. This change comes amid the ongoing housing crisis in the state, characterized by high demand and limited supply due to years of regulatory challenges. The legislature has passed several bills aimed at easing these regulations, with a focus on promoting housing construction.
A recent report from CalMatters indicates that 2025 is shaping up to be significant for pro-development legislation. The report highlights efforts to increase urban density, amend environmental protection laws to exempt most apartment buildings from review, and expedite the building permit process. These measures are seen as more aggressive than previous attempts, which have not significantly impacted housing construction.
Governor Gavin Newsom recently supported Assembly Bill 609, which unanimously passed the Assembly and is now in the Senate. This bill focuses on infill housing in urban areas and targets larger market-rate projects. Despite these developments, some argue that permanent reform of the California Environmental Quality Act (CEQA) is necessary to further alleviate housing challenges.
CalMatters also notes a decline in tenant-focused legislation this year, with ambitious rent control measures being shelved. This shift reflects an understanding among some Democrats that such controls can limit housing production and contribute to higher rents over time.
In November, California voters overwhelmingly rejected Proposition 33 for the third time since 2018. This proposition would have allowed cities to impose extreme forms of rent control. However, Senate Bill 384 was passed, prohibiting landlords from using algorithms to determine rents.
Despite these changes, critics point out that other policies continue to impact housing costs negatively. For example, a Republican bill aiming to halt a new fuel standard by the California Air Resources Board was rejected by Democratic leaders despite concerns about rising gas taxes.
While Senator Josh Hawley remains an outlier within his party for supporting minimum wage hikes alongside debt issues, California Democrats are showing signs of adjusting their approach towards market economics through housing deregulation efforts.
