California Lawmakers Send Housing Bills To Newsom
California lawmakers closed out the legislative session by sending a stack of housing bills to Governor Newsom’s desk, aiming to speed up permitting, cut ADU fees, and unlock more infill construction across the state’s most transit-rich cities. The push comes as the market sends mixed signals: mortgage rates ticked back up this week on oil-driven inflation worries, even as national listings hit a multi-month high and buyer demand cooled. California’s story stays local — San Francisco’s AI-wealth-fueled bidding wars show no sign of slowing, while San Diego’s coastal inventory keeps shrinking at the entry level, leaving serious buyers with real, if uneven, opportunity.
In The News:
HousingWire — A raft of California housing bills heads to Newsom; here’s what’s new (August 31, 2026) — California lawmakers sent a wave of housing bills to Governor Newsom, including SB 677 (limiting subdivision-map appeals that delay approved infill projects), SB 1117 and AB 956 (cutting ADU fees and permitting two detached units per lot), SB 1014 (requiring cities to disclose infrastructure requirements within 30 days), and AB 2074 (letting seven transit-rich cities, including Los Angeles, San Diego, and San Francisco, approve high-rise housing near transit hubs).
The Mortgage Reports — Mortgage Rates Inch Higher (September 1, 2026) — The average 30-year fixed rate climbed to 6.759% Tuesday, its third straight daily increase, after fresh military strikes in the Middle East pushed oil prices to $87.68 a barrel and lifted Treasury yields. Rising energy costs stoked inflation worries, which typically push mortgage rates higher. Forecasters still expect rates to ease modestly by year-end, though near-term volatility remains elevated ahead of upcoming Fed commentary.
Redfin — New Listings Hit 4-Month High While Demand Slips, Giving Serious Buyers Chance to Get a Deal Done (August 27, 2026) — New listings rose to their highest level since April during the four weeks ending August 23, while pending sales fell to a six-month low, giving patient buyers more leverage nationally. In California, San Jose new listings jumped 13.3% year over year even as sale prices slipped, while San Francisco pending sales rose 3.3%. Redfin named Los Angeles, Sacramento, and San Diego among the best metros for buyers to negotiate a deal this fall.
NPR — AI wealth is creating a ‘mansion shortage’ and upending San Francisco’s housing market (September 1, 2026) — Compass economist Mike Simonsen counted 44 San Francisco home sales in June that closed at least $1 million over asking, as newly wealthy AI executives race to buy before their kids start school. Bidding wars have pushed all-cash offers above $25 million without winning, and the frenzy has spread to rentals, with tenants offering incentives like new televisions to land a lease.
Bubbleinfo.com — Inventory Watch (August 31, 2026) — Active listings across coastal North San Diego County fell to just 397 homes by the end of August, down from 477 a year ago and 569 in 2024. The squeeze is worst at the entry level — buyers looking under $3 million between La Jolla and Carlsbad, an area of roughly 300,000 people, had only 122 homes to choose from.
