How Recent Legislative Changes in California are Shaping Pasadena’s Housing Supply
If you’ve been in Pasadena for a while, you know the city has a real charm—gorgeous historic homes, tree-lined streets, and a community that feels like a small town, even though we’re just a short drive from the heart of Los Angeles. But that charm comes with a challenge: there’s just not enough housing to meet demand. With more and more people wanting to call Pasadena home, it’s become tougher for buyers to find available properties and for sellers to meet the competitive market’s pricing expectations.
Luckily, California has been working on this issue, introducing new legislation to address the state’s housing crisis. As a real estate agent who’s lived and worked in Pasadena for years, I’ve seen how these new laws are starting to shape our local market. So, let’s take a closer look at how these changes might impact you if you’re thinking about buying or selling a home here.
Why California’s Housing Shortage Matters for Pasadena
What’s Behind the Housing Shortage?
I’m sure you’ve heard about California’s housing crisis—it’s been making headlines for years. But what does that actually look like for us here in Pasadena? Well, there’s just not enough housing to go around, especially in the most desirable neighborhoods. I’ve had clients who searched for months, sometimes even years, to find the right home in areas like Madison Heights or Linda Vista. And once they find something, they’re often competing with multiple offers, driving prices up even more.
This shortage isn’t just about a lack of homes—it’s about affordability too. With demand so high and supply so limited, prices have skyrocketed. And this isn’t just a problem for buyers; sellers are facing tough decisions as well. Should they cash in now while prices are high? Or should they wait to see if the market cools down? It’s a tricky balance.
What the New Legislation Aims to Do
To address these issues, the state has rolled out a few new laws that aim to increase housing supply. The big ones are SB 9, SB 10, and AB 2011. I know, legislative jargon can get confusing, but stay with me—these could actually open up some exciting possibilities for homeowners and buyers in Pasadena.
SB 9: This law allows homeowners to split their single-family lots into multiple units, potentially adding duplexes or triplexes where there used to be only one home.
SB 10: This bill makes it easier for cities to approve zoning for higher-density housing near public transit, which could mean more apartments or condos popping up close to Pasadena’s Metro stations.
AB 2011: This one lets developers convert underused commercial properties into residential units, which could transform some of Pasadena’s older commercial corridors into new housing.
I’ve had a few clients ask me about these changes lately, wondering if they could take advantage of SB 9 to build an extra unit in their backyard or how these laws might affect their home’s value. Let’s dig into how this might play out locally.
How These Laws Are Impacting Pasadena’s Housing Supply
Increasing Density in Single-Family Neighborhoods
One of the most noticeable changes from SB 9 is the ability for homeowners to split their lots and build more housing units. Now, I know that might sound like a big shift for Pasadena’s quiet, historic neighborhoods, but we’re not talking about high-rise condos here. These are typically smaller, more thoughtful infill projects.
I’ve been working with a client in Bungalow Heaven, one of Pasadena’s most charming historic districts. They’ve got this incredible Craftsman home on a large lot, and they’ve been thinking about splitting it to add a couple of smaller units in the back. They’re planning to keep the main house just as it is but create additional housing while maintaining the neighborhood’s character. It’s been a fascinating process to navigate, especially when you consider Pasadena’s dedication to preserving historic architecture.
These types of projects can help alleviate some of the housing pressure by allowing more people to live in established neighborhoods, without radically altering the landscape.
The Rise of ADUs and Multi-Generational Living
We’ve already seen a rise in Accessory Dwelling Units (ADUs) in Pasadena, and it’s only going to increase with the new laws. ADUs are essentially smaller homes built on the same lot as a primary residence, often used for rental income or multi-generational living. I had a client in South Arroyo who built an ADU for their elderly parents. The beauty of it? Their parents got to live independently, but close by, and they added tremendous value to their home in the process.
ADUs are also a fantastic option for homeowners who want to generate some rental income without the hassle of buying a second property. I’ve had a few clients recently who, after adding an ADU, were able to help offset their mortgage costs with rental income. And with the flexibility of Pasadena’s local ADU laws, it’s becoming a real game-changer for the housing supply.
Commercial Spaces Converted to Housing
Under AB 2011, underutilized commercial spaces can now be converted into residential units. This could make a big difference in areas like East Colorado Boulevard or South Fair Oaks, where there are several older commercial properties that aren’t being used to their full potential. I’ve been hearing murmurs from some developers about potential projects in these areas, and it could mean more affordable housing options in Pasadena in the near future.
Imagine some of those old office buildings or strip malls being turned into stylish new apartment complexes. It’s still early days, but I wouldn’t be surprised if we see more of this happening soon.
What Buyers Should Expect
More Options, But Also More Competition
For buyers, these legislative changes could mean more options. Duplexes, triplexes, ADUs, and even apartments from converted commercial spaces could provide more variety and price points in Pasadena, where every bit of new housing helps.
That said, you might also face increased competition from investors and developers, who see potential in these new laws to maximize their returns. I’ve already had conversations with a few clients about whether it makes sense to buy a property now and split it later under SB 9, and there’s definitely interest out there.
New Neighborhood Dynamics
Keep in mind that traditionally single-family neighborhoods may start to see a bit more density. For some buyers, this is great news—it could mean more affordable homes in areas that were previously out of reach. But for others, it might raise concerns about how these changes will impact the character of their neighborhood.
When I sold a home in Pasadena Highlands earlier this year, the buyers were excited about the neighborhood’s potential for growth under these new laws. They loved the idea that more housing could mean more vibrancy and diversity in the area. But they were also cautious about what that might mean for traffic, schools, and the overall feel of the neighborhood.
What Sellers Should Consider
Unlocking New Value
For homeowners, these changes could be a golden opportunity. If you’re sitting on a large lot, you might be able to split it and build additional units, which can increase your property’s value significantly. I’ve had clients in Altadena who did just that, and they were thrilled with the return on investment.
Even if you’re not ready to develop yourself, your property might become more attractive to buyers who are looking for lots with potential under SB 9 or 10. It’s a great time to chat with a Realtor to see how these laws might affect your home’s value if you’re thinking of selling.
Attracting a Broader Pool of Buyers
One of the best things about these new laws is that they’re attracting a broader range of buyers, including investors who are eager to develop properties. This means that, as a seller, you might find more competition for your home, especially if it’s in a neighborhood where development potential is high.
When I listed a home in Monterey Hills earlier this summer, we saw interest not just from families but also from a couple of investors who wanted to take advantage of the lot size to build additional units. The increased interest helped us sell faster and for a higher price than we initially expected.
The Road Ahead: Challenges and Opportunities for Pasadena
Balancing Growth with Preservation
Of course, not everyone is thrilled about these changes. Pasadena is known for its historic neighborhoods and well-preserved architecture, and there are valid concerns about overdevelopment. Balancing the need for more housing with the desire to maintain the city’s character is going to be a challenge, especially in areas with strict preservation rules like Bungalow Heaven.
But with careful planning and thoughtful development, I believe Pasadena can rise to the occasion. These laws are a step toward addressing the housing crisis while preserving the beauty and history that makes Pasadena special.
Conclusion
So, what does all this mean for you? Whether you’re looking to buy or sell a home in Pasadena, these new laws are likely to play a role in shaping the market. More housing options are coming, but so are new opportunities for maximizing property value.
If you’re curious about how these legislative changes might affect your real estate plans, give me a call. I’d love to help you navigate the evolving Pasadena market and find the best opportunities for you.