Governor Gavin Newsom’s signature on Senate Bill 79 just rewrote the playbook for development near transit corridors. Starting July 1, 2026, properties within a half-mile of key Metro stops, rail lines, and major bus routes will be eligible for state-mandated upzoning — taller buildings, higher density, and more flexibility than many local rules ever allowed.
That’s not just a policy update. It’s a market signal.
Why This Law Changes the Game
For decades, restrictive zoning has capped the value of parcels near high-capacity transit. SB 79 changes that overnight, forcing cities to allow greater density around heavy rail, light rail, and bus rapid transit stops.
That means new opportunity for multi-family investors, developers, and landowners — especially those holding underused parcels in Los Angeles County and other urban hubs.
-
Higher density, higher yield. Sites once limited by local zoning can now go taller and denser.
-
Faster approvals. Pair SB 79 with streamlining laws like SB 35, and you can shave months off entitlement timelines.
-
Growing demand. As California doubles down on transit-oriented growth, these corridors are poised to attract new residents — and capital.
The Moment to Act Is Now
Transit corridors equal long-term demand. And with SB 79, those corridors just became ground zero for redevelopment.
Developers are already scouting sites near rail and rapid bus routes, and buyers are evaluating which parcels make the most sense for future redevelopment. Owners who understand how SB 79 changes their property’s development potential will be best positioned to capitalize.
If you own a parcel within walking distance of a Metro line or transit hub, you’re now holding a potential premium asset. Now is the time to strategize, not speculate. By assessing your property’s eligibility under SB 79 today, you can determine the optimal timing and approach for a future sale — one that maximizes returns when buyer activity and pricing conditions align.
Why Timing Matters
Real estate cycles reward the proactive. While new projects take years to entitle and build, today’s transactions are moving on anticipated future zoning. Investors who move first will set the comps, control the timeline, and avoid the rush that follows implementation.
SB 79 effectively increased the value of well-located land — and those who wait for everyone else to notice risk leaving money on the table.
The Bottom Line
SB 79 isn’t just about more housing — it’s about unlocking dormant value across California’s transit corridors.
NOW is the time to explore what your property could command under this new law. With stronger density allowances, active buyer interest, and the clock ticking toward 2026, you have leverage — but only if you act before the market adjusts.
Your parcel might have been an average site yesterday. Under SB 79, it could be tomorrow’s most sought-after redevelopment opportunity. Contact us today to evaluate your site’s potential and create a tailored strategy to capture full value under SB 79 — on your terms and your timeline!
Questions? Contact the TIG Team!
Click on a contact card below to email one of our team members directly.
