California Law Could Add 700,000 Homes

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As someone deeply invested in the housing landscape across Santa Clara, San Benito, and San Mateo counties, I keep a close eye on the policies shaping our neighborhoods. California’s ambitious plan calls for over 300,000 new homes each year, but the reality is that approvals remain far below that target. Many well-intended laws—such as the lot-split and church-land measures—have struggled to deliver, with the latter only permitting 94 units statewide. Financing challenges persist, especially due to strict labor rules and below-market mandates that can add nearly $100,000 to the cost of each home. Yet, some simpler solutions are making a difference: accessory dwelling units (ADUs) now account for over 20,000 permits yearly, nearly a quarter of all approvals, and density bonuses are even more impactful, with just under 50,000 approvals annually—almost half of new multifamily homes. For buyers, sellers, and investors in our local communities, understanding these trends is crucial to making confident decisions. I’m passionate about making this information accessible and clear, especially for the families I serve in both English and Spanish.

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