The Better California California is also among the states passing unique housing legislation to try and cut some of the red tape around development. Gavin Newsom signed laws SB 6 and AB 2011 to allow residential development on sites currently zoned for commercial use. AB2011 will let developers build housing on some commercial land without asking permission from local governments, while SB 6 lets developers build housing on some commercial land, but the projects will still have to go through an environmental review process. Local government officials have pushed back on the law, arguing that it undermines community preferences and that stores generate more tax revenue than housing. Housing advocates and state government officials view the law as a win, saying much of the retail space often sits empty for years, and changing these buildings over to housing will help the state build the necessary 310,000 units over the next two and a half years it needs to keep up with demand. Either way, the law passed and went into effect in July of 2023. State officials have already announced further plans to try and accelerate housing, funding another round of the California Housing Accelerator, which provides funding to projects stalled by unable to get tax credits. The project will get 2,755 new housing units underway with a focus on affordable housing for low-income residents. Developers will want to keep an eye on both of these initiatives, as zoning changes and increased funding may increase opportunities for residential or mixed-use development throughout the state. Key Facts Status Most Impact Approach Legislation passed State and Local and in effect Avg. House Price 2023 Population Growth From 2010-2020 $728,000 up 6.1% or 2,284,267 people 15