California’s housing crisis has been a hot topic for years, with demand for homes far outstripping supply and prices soaring. In response, Senate Bill 9 (SB9) was signed into law in 2021, setting the stage for a significant transformation in how housing is developed across the state. SB9 allows homeowners to subdivide their single-family lots and build up to four units, creating more housing opportunities in areas traditionally zoned for just one home. This law is viewed as a key solution to increasing housing availability in high-demand areas, while also providing flexibility for property owners.
In this blog, we’ll take a closer look at how SB9 is reshaping neighborhoods, its impact on urban planning, and why this change is seen as a win for both homeowners and communities.
What is SB9? An Overview
Senate Bill 9, officially known as the California Housing Opportunity and More Efficiency (HOME) Act, is designed to help ease the state’s housing shortage by allowing higher-density developments in areas zoned for single-family homes. The bill gives property owners the ability to split their lots and build multiple units, up to four per lot, without having to go through restrictive local zoning rules that previously limited development.
Key Provisions of SB9:
- Lot Splitting: Homeowners can divide their property into two lots, allowing for additional homes to be built.
- Building Flexibility: Owners can construct up to two units on each lot, meaning a single-family property could accommodate up to four homes.
- Exemptions: Certain areas, such as environmentally sensitive zones or high fire-risk areas, are exempt from SB9’s provisions.
Recent Developments: Since the law came into effect, cities across California have seen an increase in applications for lot splits and duplex developments. While some cities have voiced concerns about how SB9 might affect their local infrastructure and community character, the state has been working to streamline the process and ensure that the law benefits as many homeowners and potential renters as possible.
Transforming Housing Density with SB9
One of the most exciting aspects of SB9 is how it allows homeowners to add more housing units in areas where it was once difficult or even impossible to build more than one home. By enabling property owners to split their lots and build duplexes or multiple units, SB9 increases the overall housing density in cities and suburbs, helping to address the housing crisis without the need for large, high-rise developments.
Increased Housing Options and ADUs
SB9 also works well in conjunction with California’s Accessory Dwelling Unit (ADU) laws. ADUs are smaller, secondary homes that can be built on a lot with an existing primary residence. When paired with SB9, homeowners can further maximize the number of housing units on their property. For example, a single-family lot could potentially accommodate two homes and two ADUs, significantly increasing the housing stock on that one property.
This flexibility is great news for homeowners looking to generate rental income, create housing for family members, or simply boost the value of their property. Additionally, it offers more affordable housing options for renters, especially in areas where housing has historically been scarce or unaffordable.
New Trends: Since SB9 was implemented, there has been a noticeable rise in lot-splitting applications in urban areas, particularly in cities like Los Angeles and San Francisco. Homeowners are seeing the benefits of this flexibility, whether it’s creating rental income or simply expanding the available housing options for their community.
Enhancing Neighborhoods and Community Design
While some may worry that increasing housing density could negatively impact the character of their neighborhood, SB9 offers opportunities to enhance community design and encourage a more vibrant, inclusive environment. With thoughtful planning, multi-unit homes can blend seamlessly with existing single-family residences, bringing new life to older neighborhoods and fostering a greater sense of community.
Cities like Pasadena and Santa Monica are leading the way by introducing design standards that ensure new developments complement the existing architectural style and feel of the neighborhood. This not only maintains the visual appeal of the community but also promotes a healthier mix of housing options that can accommodate different income levels and family sizes.
Supporting Growth with Transit-Oriented Development
SB9 isn’t just about increasing housing—it’s also about smart urban growth. By promoting higher-density housing in already developed areas, SB9 aligns well with transit-oriented development (TOD) strategies. TOD encourages the building of homes near public transit hubs to reduce car dependence, increase walkability, and create more sustainable urban environments.
In many cities, SB9 is being integrated into broader urban planning efforts to ensure that new developments are well-connected to public transportation and other essential services. This approach helps create neighborhoods where people can live, work, and access amenities without relying solely on cars, improving overall quality of life and reducing traffic congestion.
Recent Initiatives: Cities like Los Angeles are working to expand their public transportation networks in areas where SB9-driven development is likely to occur. By improving bus routes and extending metro lines, they aim to create more accessible, connected communities that are attractive to both new and existing residents.
Economic Benefits and Expanding Housing Affordability
One of the main goals of SB9 is to increase housing supply, which in turn can help stabilize or even reduce housing prices. By making it easier for property owners to develop their land and create more housing units, the law offers a market-driven solution to California’s housing crisis.
For homeowners, SB9 presents significant financial opportunities. Property values can increase as more homes are built on a single lot, and many owners are taking advantage of this by renting out additional units for income. This creates a win-win situation: homeowners benefit financially, and the state benefits from the increase in available housing.
Affordability Impact: While SB9 doesn’t mandate that new units be affordable, the increase in housing supply should help relieve some of the pressure on the market, especially in high-demand areas. More housing options can lead to more competitive pricing, making it easier for renters and potential homeowners to find homes within their budget.
SB9’s Role in Shaping California’s Future
SB9 is poised to have a lasting impact on how California addresses its housing needs. By allowing more homes to be built on existing properties, the state is encouraging smarter, denser, and more sustainable growth. The benefits for homeowners and cities alike are clear: more housing opportunities, increased property values, and the creation of vibrant, well-planned communities. While there are challenges ahead, the potential for SB9 to make a meaningful difference in California’s housing market is undeniable.
Get Expert Guidance from Builders Now
If you’re a homeowner looking to take advantage of SB9, now is the perfect time to act. Whether you’re interested in splitting your lot, building additional units, or simply exploring your options, Builders Now is here to help. Our team specializes in SB9 compliance, ADU construction, and new home construction, ensuring that you can make the most of your property with expert guidance every step of the way.
Contact Builders Now today for a free consultation, and let us help you turn your vision into reality while taking full advantage of the opportunities SB9 has to offer!