Wiener’s SB 79 could get more high-density units built, but most still being rented or sold at unaffordable market rates
By Thomas Elias
October 21, 2025
By far the most attention in this fall’s California legislative session went to Gov. Gavin Newsom’s plan for a special redistricting election early in November to counteract a Texas move aiming to convert Democratic House seats there into Republican ones.
However, another new law just signed by Newsom will eventually prove far more consequential to the future of California cities. It’s called Senate Bill 79 and will leave many California skylines altered, once it plays out, in the direction of population-dense high-rise buildings.
Yes, multi-unit apartment construction is down statewide this year from last year’s figures by about 20%, making 2024 construction look like it may have been on steroids. The drop comes largely because new apartments today typically need $4,000 to $5,000 in monthly rent just to break even.
However, SB 79 has the long-term potential to change things in the name of housing density that could help solve the state’s shortage. The problem is that it probably won’t do that soon because the vast majority (about 70%) of units being built are to be rented or sold at market rates rather than seeking occupancy as subsidized affordable housing.
Given that well more than half of all California renters pay higher than 30% of their income for housing, relatively few can afford what are called market rates. So thousands of units built in the last three years now lie vacant, while shortages persist elsewhere.