California’s 2025 legislative session delivered meaningful progress on housing, but mounting regulatory and cost barriers continue to undermine the state’s competitiveness, according to Orange County Business Council President and CEO Jeffrey Ball.
California lawmakers passed two landmark housing bills, SB 79 and CEQA reform, to address the state’s housing crisis, but their impact remains to be seen due to structural realities and local political resistance.
California’s housing reforms are being threatened by a federal immigration crackdown, which could lead to a shortage of skilled workers and a delay in the construction of new homes.
California is set to implement a major environmental and housing reform with the expected signing of AB 609 into law, which will exempt certain infill housing projects from CEQA review, allowing for faster and more efficient construction of new homes in already developed areas.