New Year, New Home!

Buying a Home in California Will Look Different in 2026

If you’re planning to buy a home in California, especially in the Northern Bay Area, 2026 brings important changes you’ll want to know. New housing laws are expanding buyer options, strengthening safety standards, and streamlining approvals across the state.

Here’s a breakdown of the key updates shaping the market—and what they mean for you.

1. SB 79 – More Homes Near Public Transit

The Abundant and Affordable Homes Near Transit Act allows higher-density housing within half a mile of major transit hubs, including BART, Caltrain, and ferry terminals. What this means for you as a Buyer. We will see more modern, walkable housing options near jobs, transportation, and everyday amenities.

2. AB 1455 – Wildfire Safety Zones

California is introducing “Zone 0” ember-resistant buffers within five feet of homes in wildfire-prone areas. These standards apply immediately to new construction and will extend to existing homes within three years. What this means for you as a Buyer. You should verify compliance when purchasing in fire-risk areas, as it can impact both safety and insurance eligibility.

3. AB 253 – Faster Permit Approvals

If a city or county exceeds 30 days for plan reviews, buyers can now hire a private reviewer to keep projects moving. What this means for you as a Buyer. This will be ideal for Bay Area buyers planning renovations or new builds; less red tape and faster progress.

4. AB 493 – Interest on Insurance Funds

Lenders are now required to pay 2% annual interest on insurance proceeds they hold following a claim. What this means for you as a Buyer. This protects homeowners from unnecessary delays after a loss or disaster.

5. AB 226 & AB 525 – FAIR Plan Improvements

Additional funding will strengthen California’s FAIR Plan, improving fire insurance availability; including coverage for manufactured and mobile homes. What this means for you as a Buyer. Securing insurance, even in higher-risk areas, is becoming more stable and accessible.

6. California Dream For All Shared Appreciation Loan

If you have not heard about this, and you are a new home buyer, this is a great opportunity. The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs. See if you qualify >>

Overall

With more flexible zoning, faster approvals, and stronger wildfire protections, 2026 is shaping up to be a more buyer-friendly year in California real estate.

As your trusted Northern Bay Area Realtor, I stay ahead of laws, policies, and market shifts, so you don’t have to. Whether you’re buying your first home or stepping into your forever home, I’ll guide you through the process with clarity, confidence, and strategy.