Newsom Signs Law To Break Housing Logjam
California's housing market enters October pulled in several directions at once. State lawmakers broke new ground by signing legislation aimed at a single stalled San Diego megaproject, signaling that Sacramento is now willing to intervene directly in CEQA litigation gridlock. Meanwhile, mortgage rates pushed to their highest level in nearly three years, cooling both purchase and refinance demand just as insurers quietly test the waters of fire-prone markets again. Inventory tells two different stories depending on the map, with coastal supply still scarce while inland counties loosen. And a shrinking pool of licensed agents suggests the slowdown is reshaping who sells homes, not just how many change hands.
In The News:
HousingWire — Newsom Signs CEQA Bills Targeting Midway Rising (October 2, 2026) — Gov. Newsom signed SB 344 and SB 958, halting further CEQA challenges against the $3.9 billion Midway Rising redevelopment once San Diego certifies it, and barring building-height increases from counting as an environmental impact factor for qualifying infill projects statewide. The 49-acre project is slated to deliver more than 4,000 homes, including 2,000 affordable units, after years of litigation over its height limits.
Yahoo Finance (MBA data) — US Mortgage Rates Increase To An Almost Three-Year High (September 30, 2026) — The average 30-year fixed rate climbed to 7.30% last week, the sixth straight weekly increase and the highest reading since November 2023. Purchase applications fell 4.3% to their lowest level since April 2025 while refinance demand dropped 8.7%, as homeowners locked into 3-4% rates increasingly stay put.
The Union — FAIR Plan Rate Increases Coming In October Prompt Private Insurers To Resurface (September 29, 2026) — California's FAIR Plan premiums rise an average 29.1%, and far more in high-risk zones, for policies renewing after October 15. Nevada County agents report increases of 30-36% locally, but admitted private carriers are starting to re-enter the market, a sign coverage options may slowly be expanding.
North Coast Financial — California Real Estate Market Analysis: September 2026 (September 21, 2026) — Statewide unsold inventory reached 3.7 months in August, but conditions vary sharply by region: San Francisco sits at a tight 1.3 months of supply while San Bernardino has climbed to 5.4 months. Price appreciation is similarly uneven, with San Diego posting 6.3% year-over-year gains while Fresno slipped 3.7%.
HousingWire — California's Housing Market Is Tough. Is Real Estate Still A Viable Career In 2026? (September 21, 2026) — California's licensed agent pool shrank by about 10,500 people over the past year, a 2.4% drop to 422,234 total licensees, as part-time and low-volume agents exit a slower market. Despite the shakeout, the top quartile of San Francisco agents averaged $385,900 in income, up 17% year-over-year.
