Governor Gavin Newsom has officially signed Senate Bill 79, a sweeping housing law that overrides local zoning to allow buildings up to nine stories near major transit stops in eight California counties — including Los Angeles, Orange, and San Diego. The law takes effect July 1, 2026, marking one of the state’s most aggressive pushes yet to address its long-standing housing shortage.

Statewide Impact: Density at Transit Hubs

Under SB 79, developers can build:

• Up to nine stories next to subway stations,

• Seven stories within a quarter mile, and

• Six stories within a half mile of those same transit stops.

Similar allowances apply to light rail and bus corridors with dedicated lanes. The goal is to place new housing near public transit, reduce car dependency, and cut greenhouse gas emissions — all while tackling California’s ongoing housing crisis.

Supporters, including California YIMBY, praised the move as historic. “With his signature on SB 79, Governor Newsom cements his legacy as one of the most transformative pro-housing leaders in California history,” said CEO Brian Hanlon.

Opponents, however, including Mayor Karen Bass and the Los Angeles City Council, argued that the law strips cities of local control and imposes a one-size-fits-all solution. Councilmember Katy Yaroslavsky went further, calling the measure “unfair,” noting that “Beverly Hills gets off the hook, and Los Angeles is left holding the bag.”

Mapping the Chaos

While the bill’s intent is clear, its implementation is murky. Multiple carve-outs and exemptions mean not every property near transit will be eligible. High-risk fire zones, historic preservation areas, and certain low-resource neighborhoods are temporarily exempt through 2030. Smaller, affluent cities such as Beverly Hills and South Pasadena received reduced upzoning radiuses, often shrinking from a half-mile to a quarter-mile — the so-called “Beverly Hills carve-out.”

The official eligibility map will be released by the Southern California Association of Governments (SCAG) in coming months, but preliminary draft maps already show wide variations. Some parcels a half-mile “as the crow flies” from a station could still be exempt if physical barriers like freeways or rail lines make pedestrian access impractical.

Palos Verdes and the South Bay: Largely Unaffected

According to the state’s draft ArcGIS visualization, the Palos Verdes Peninsula and nearby Beach Cities — including Manhattan Beach, Hermosa Beach, and Redondo Beach — appear largely outside the designated upzoning areas. With no subway or light rail stations on the Peninsula and limited dedicated bus corridors, the law’s reach stops short of most South Bay neighborhoods.

That means Palos Verdes homeowners will likely see no immediate zoning changes under SB 79. Local character, scenic coastal views, and hillside open spaces remain protected — at least for now.

Local Perspective: Stability Amid Statewide Change

“As a longtime Palos Verdes Realtor, I’m watching SB 79 closely,” said Suzanne Dyer, top luxury Realtor with Strand Hill | Forbes Global Properties. “While the law will reshape development patterns in Los Angeles and other major cities, the Peninsula’s limited transit infrastructure means we’re unlikely to see taller buildings or dense zoning here. That stability continues to make Palos Verdes one of Southern California’s most desirable coastal communities for homeowners seeking space, privacy, and natural beauty.”

Still, Dyer notes that statewide reforms can ripple outward: “Even if Palos Verdes remains exempt, we could feel indirect impacts — from shifting buyer demand, new affordability requirements, or developers redirecting investment toward neighboring cities.”

Looking Ahead

Cities, developers, and homeowners will have to wait for SCAG’s official parcel-level map to confirm eligibility. Until then, it appears Palos Verdes and much of the South Bay will remain untouched by the new upzoning — preserving the area’s unique residential character even as California takes unprecedented steps toward higher-density urban living.