Recent Bay Area Housing Reforms and What They Mean for Homebuilders in 2026

A Year of Big Change for California Housing Policy

2025 turned out to be a milestone year for housing in California. With sweeping reforms signed into law by Gavin Newsom and the State Legislature, barriers that long delayed or blocked housing development are being lowered, a shift that stands to reshape the landscape of homebuilding across the Bay Area.

For homeowners, developers, and custom‑home builders like Seamus Collins Construction, this moment offers real opportunity.

Key Reforms to Know

CEQA & Permitting Reform
New legislation, including Assembly Bill 130 and Senate Bill 131, overhauls the state environmental review process for many housing and infrastructure projects. In particular: infill housing developments in appropriately zoned urban areas may now be exempt from full environmental review under certain conditions.

This means faster approvals, fewer delays, and reduced risk of costly litigation, historically some of the biggest barriers for custom builders and homeowners.

Transit‑Oriented Zoning Near Transit Hubs
With the passage of Senate Bill 79, the “Abundant & Affordable Homes Near Transit Act”, developers can now take advantage of updated state zoning standards to build mid‑rise homes near major public transit stops.

For homeowners interested in mid‑size custom homes, duplexes, or multi-unit builds close to transit, this opens significant possibilities for growth, convenience, and long-term value.

Density Bonus & Incentive Structure (when combining affordability or housing reform components)
The new legal framework continues to support density bonuses and housing‑incentive programs when projects meet certain criteria, especially including affordable units, ADUs or infill homes. That offers homeowners and builders greater flexibility, higher unit yield, and stronger return potential.

What This Means for Anyone Who Wants a Custom-Built Home

  • Shorter lead times & reduced bureaucratic risk: Projects that once took years of environmental review and zoning approvals will move faster. This is critical for homeowners who want to build sooner rather than be stuck waiting.
  • More options for land use and design: Whether building a new home, an accessory dwelling unit (ADU), or a multi‑unit project near transit, the revised laws expand the range of viable parcel uses.
  • Better economics & return on investment: Faster turnarounds, more units (via density or zoning bonuses), and potentially lower regulatory overhead should improve project feasibility and long‑term value.
  • Adaptability across the Bay Area. Because these are state‑level reforms, they apply broadly — whether you’re building on the Peninsula, East Bay, Marin, or elsewhere.

How Seamus Collins Construction Helps You Navigate the New Normal

At Seamus Collins Construction, our strength has always been our ability to combine design excellence with strong regulatory and permitting expertise. Now more than ever, that experience matters. Here’s how we help clients make the most of these reforms:

  • Site Evaluation & Feasibility Analysis: We assess whether your property or lot qualifies under the new laws, especially for infill, transit‑adjacent, or multi‑unit builds.
  • Zoning & Permit Navigation: We guide the permitting process, handle filings, coordinate with architects/engineers, and manage compliance to minimize surprises and delays.
  • Design-Build Strategy: We integrate smart design with building plans that take advantage of density bonuses, transit‑oriented zoning, and streamlined regulations, whether you’re thinking ADU, duplex, or a custom family home.
  • Budget & Schedule Planning: With reduced regulatory friction, we help clients align budgets and timelines realistically so you start construction sooner, and more predictably.

Is Now the Right Time to Build? Yes, Especially If You’re Strategic

If you’ve been on the fence about building, remodeling, or developing a property in the Bay Area, these reforms have tilted the balance in your favor. With smarter laws, greater zoning flexibility, and a builder like Seamus Collins Construction to guide the way, 2026 could be the most compelling year in decades to build.

Thinking about your next home project? Contact us today to discuss how these new laws might apply to your property, and how we can turn possibility into reality.

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