What SB 79 Does and Why It Matters
California’s housing crisis has been years in the making, with limited supply and rising prices keeping many buyers locked out of the market. But a major new law, Senate Bill 79 (SB 79), aims to change that—especially in transit-rich areas like San Diego. This law mandates higher-density housing near transit stops, opening the door to more affordable housing and more mortgage approvals.
Lending Bee sees SB 79 as a game-changer. For buyers looking in San Diego’s neighbor-hubs, this new zoning law could make homeownership more attainable and mortgage approvals more likely. Here’s how.
Signed into law in October 2025 and going into effect July 1, 2026, SB 79—also known as the Abundant and Affordable Homes Near Transit Act—requires cities to allow more housing density within a half-mile of major transit stations. This includes light rail, commuter rail, subways, ferry terminals, and bus rapid transit.
Cities can no longer block this development through restrictive zoning codes. That means more multi-family buildings, mid-rise apartments, and affordable housing units can be built where once only single-family homes were allowed.
This shift is crucial in places like San Diego, where a growing population, limited buildable land, and expensive home prices have created a perfect storm of unaffordability. By forcing cities to open up transit-adjacent land to more homes, SB 79 tackles one of the root causes of the housing crisis—limited inventory.
Housing Growth Spurs More Mortgage Activity
More Inventory Means More Approvals
Mortgage lenders—including Lending Bee—know that housing supply has a direct impact on loan volume. When more homes are available, more buyers can enter the market, and more loans get approved. By unlocking thousands of parcels near transit for higher-density construction, SB 79 helps expand the pool of financeable homes.
That’s especially valuable in San Diego’s neighbor-hubs—areas just outside the downtown core that sit along trolley lines, bus corridors, and future transit expansions. Places like National City, Lemon Grove, El Cajon, and University Heights are all poised to benefit.
Lending Bee helps clients find financing for a range of property types, and SB 79 opens more opportunities for buyers to qualify. When buyers have more housing options at a variety of price points, approval rates increase.
More Affordable Units = Easier Qualification
SB 79 also incentivizes developments that include affordable housing units. For buyers, that means a chance to qualify for special mortgage programs, including low down payment options and first-time buyer incentives.
Lending Bee specializes in helping moderate- and low-income borrowers access these types of programs. With SB 79 encouraging affordability near transit, Lending Bee expects to see more clients able to secure favorable loan terms in these newly zoned areas.
Stabilizing Prices for Better Mortgage Outcomes
Supply Helps Reduce Inflation Pressure on Home Prices
In recent years, rapid price increases in San Diego have put many homes out of reach for middle-income buyers. Appraisals often come in too high for lenders to approve reasonable loan amounts, or buyers simply can’t meet the required down payment.
By increasing the housing supply, SB 79 helps moderate these price spikes. With more homes on the market, competition slows, and prices can stabilize. This helps appraisals stay within reason and keeps mortgage approval conditions manageable.
Lending Bee provides expert guidance through the appraisal and underwriting process. When property values are more consistent and affordable, clients face fewer obstacles when applying for financing.
Higher Density Reduces Development Costs
Building higher-density housing can be more cost-effective per unit than detached single-family homes. This can lead to lower sales prices for buyers—and that translates to smaller loan amounts, better loan-to-value ratios, and more favorable debt-to-income calculations.
Lending Bee ensures clients get matched with the right loan products, including FHA, VA, and conventional loans. Lower purchase prices make it easier for clients to qualify and close on time.
Better Transit Access Strengthens Mortgage Viability
Transit Proximity Adds Long-Term Property Value
Homes near reliable public transit tend to retain and grow in value over time. They appeal to commuters, students, and professionals who prioritize location and convenience. These are strong indicators of long-term property performance.
For mortgage lenders, that matters. Lending Bee understands how location influences lender risk profiles. A property near a transit hub may qualify for better rates or higher loan amounts because lenders see lower risk in walkable, accessible areas.
Neighborhood Demand Drives Mortgage Confidence
SB 79 will drive more demand in transit-adjacent neighborhoods, especially in up-and-coming parts of San Diego County. As developers target these areas and infrastructure improves, lenders become more confident in issuing mortgages in these markets.
Lending Bee leverages this momentum to help clients secure mortgage approvals in high-demand areas with strong growth potential.
Faster Development Timelines Mean Faster Closings
Streamlined Permitting = Faster Builds
SB 79 works hand-in-hand with California’s streamlined permitting laws. Qualifying projects with affordable housing units may bypass traditional approval delays, helping them reach the market sooner.
This matters for buyers who want to avoid lengthy construction timelines or risk losing mortgage rate locks due to delays. Lending Bee stays ahead of these developments, helping buyers prepare financially so they’re ready to move quickly once homes become available.
Predictable Inventory = Smoother Mortgage Processing
Faster, more consistent development means fewer surprises during escrow. Lending Bee helps clients navigate the loan process with minimal disruptions. When inventory enters the market in a steady flow, there are fewer bidding wars and fewer issues with appraisals or changing values.
This reliability is a win for both borrowers and lenders.
SB 79 Supports a Healthier Mortgage Ecosystem
From Restriction to Inclusion
SB 79 represents a major shift from exclusionary zoning to inclusive planning. For the mortgage market, that’s a good thing. More available homes, better infrastructure, and smarter land use all contribute to a more dynamic and accessible mortgage environment.
Lending Bee stands ready to help clients navigate this new landscape with confidence.
Lending Bee Guides You Through Transit-Oriented Mortgage Opportunities
As California implements SB 79, the real winners are buyers ready to take advantage of new housing near transit. Lending Bee offers the experience and personalized support clients need to secure financing in these expanding neighborhoods.
We stay informed, we act fast, and we put your goals first. Whether you’re exploring homes near a San Diego trolley line or looking for a low-down-payment loan in a rezoned neighbor-hub, Lending Bee ensures you get the right mortgage—on time and on budget.