Trends
Here are six factors impacting California’s housing market to consider.
By: Brad Randall, Broadband Communities
From bills targeting digital discrimination of access to the emergence of ADUs, here are six factors to keep an eye on in California’s housing market.
6.) Aggressive broadband expansion efforts
It goes without saying that a main factor to watch for in California’s changing real estate market is the impacts of over $1.86 billion allocated for the state under the Broadband Equity, Access, and Deployment (BEAD) Program. That money, combined with billions of dollars from the state allocated for middle-mile networks and last-mile infrastructure, could end up transforming many underserved communities in California, giving new viability to localities once considered off the beaten path due to their lack of access.
5.) Debate heats up over Assembly Bill 2239
Assembly Bill 2239 would prohibit providers operating in California from either directly or indirectly engaging in practices considered “digital discrimination of access.” The bill has been actively supported by the California Alliance for Digital Equity (CADE), an advocacy group “focused on all forms of digital equity,” but dissenting voices fear the bill will radically increase risk for providers, thereby discouraging rural broadband development. A recent opinion piece authored by the general manager of the Biola Community Services District., featured on the Modesto Bee’s website, surmised that the bill’s definition of discrimination was too broad, potentially exposing broadband providers to legal action for a wide range of business decisions. Earlier this month, the bill was referred to the state senate’s appropriations ‘suspense file,’ which is standard for bills that can have a financial impact on the state at large.
4.) New multifamily builds are slumping
The latest data suggests that new multifamily builds in California at large are slumping. Recent reporting from the Orange County Register highlighted data from the U.S. Census Bureau that tracks building permits both nationwide and by state. Their research revealed that permits for multifamily construction in California had hit a 12-year low, down 26 percent below the state’s 10-year average and 27 percent below activity in the previous six months. Conversely, the newspaper found that single-family housing permits were up, at 14 percent higher than the 10-year average.
3.) It’s not all bad news, especially for the Inland Empire.
When you dig deeper into the numbers, as the folks at Yardi Matrix have done with their recent report on the state of the Inland Empire’s multifamily industry, silver linings appear. Across the San Bernardino Valley’s Inland Empire, occupancy rates remain above the national average and rent growth has outpaced U.S. averages as well, a summary of the Yardi Matrix report stated. The report found that rent growth was highest in the upscale living segment. Perhaps that growth will only increase with planned construction of the area’s first planned high-speed rail station, which will connect Rancho Cucamonga to Las Vegas? Only time will tell.
2.) Big changes coming to Berkeley?
Berkeley’s mayor has said he expects a law that once used single-family zoning to discriminate against people of color to be overturned in October, according to a recent Bisnow report. According to The Real Deal, a real estate news publication, the city’s new zoning was already initially approved by the Berkeley City Council in July. Meanwhile, an annual housing report the city is required to submit to the California Department of Housing and Community Development, has outlined plans for Berkeley to add over 3,000 rental units by 2030, and 9,000 homes by 2031, setting the stage for development and population growth.
1.) The emergence of ADUs
Local governments have until New Year’s Day, 2025, to create a framework that will provide pre-approval to accessory-dwelling units, or ADUs. As was recently reported by the North Bay Business Journal, local agencies will be tasked with either approving or denying proposed ADUs within 30 days under the state’s new simplified ADU permitting process, stemming from the passage of Assembly Bill 1332. Leaders hope the emergence of ADUs in California will help ease the affordable housing gaps in a state where, according to the California Department of Housing and Community Development’s Statewide Housing Plan, one in three households doesn’t earn enough money to meet their basic needs.
To get content like this delivered to your inbox, subscribe to the Broadband Communities newsletter.
