SB 79 — Reorienting 
Growth Toward Transit-Rich Areas Will Cut Costs and Timeline Barriers

SB 79: Unlocking Transit-Oriented Housing and Private Capital in California

California’s housing crisis has never been about demand — it’s about supply. For decades, restrictive zoning, lengthy entitlements, and fragmented local control have slowed the creation of new housing, even as population and job centers have grown.

At Post, we believe effective housing policy should encourage capital flow, expand supply, and leverage private-sector capacity — not replace it. Senate Bill 79 (SB 79), recently signed by Governor Gavin Newsom, represents meaningful progress toward that goal.

What SB 79 Does

SB 79, authored by Senator Scott Wiener and signed into law in October 2025, overrides local zoning to allow denser multifamily housing — up to nine stories — within roughly a half mile of major transit hubs such as BART, Caltrain, and LA Metro stations.

As reported by the San Francisco Chronicle, the law is “a sweeping paradigm shift to undo decades of overly restrictive land-use policies that have driven housing costs to astronomical levels.” It reorients growth toward transit-rich areas where infrastructure and employment already exist, and creates a streamlined approval pathway that cuts cost and timeline barriers for qualifying projects.

The law doesn’t mandate development — it simply removes friction, allowing private developers and capital providers to respond to market demand more efficiently.

Why It Matters

• Expands Supply Where It’s Needed Most: Concentrating density near transit hubs supports sustainable growth and lowers infrastructure burden. It’s a practical path to add meaningful supply in high-cost, high-opportunity markets.
• Encourages Private Capital Flow: By reducing entitlement risk and predictable zoning, SB 79 makes projects attractive financially to institutional and private investors. Lower regulatory uncertainty translates directly into improved capital deployment.
• Leverages, Rather Than Replaces, the Private Sector: SB 79 doesn’t create new state construction programs; it enables the private sector to deliver. This market-based approach balances profit and public benefit, aligning incentives for developers, communities, and policymakers.

Post’s Outlook

At Post, we see SB 79 as a catalyst for renewed investment across California’s urban core and transit corridors. Our focus will center on:

• Transit-oriented infill opportunities that benefit from zoning reform and infrastructure access.
• Partnerships with experienced developers who can navigate the streamlined process effectively.
• Disciplined underwriting, balancing optimism about policy reform with caution on cost and absorption risk.

SB 79 doesn’t solve California’s housing shortage overnight — but it meaningfully aligns public policy with market reality. For investors and developers alike, it opens the door to a more efficient, scalable, and capital-friendly environment for housing production.