Two months ago, we wrote about SB 79 triggering 341 housing proposals in Palo Alto in just two weeks. That post — originally shared by Rob Luecke Jr on r/bayarea — hit 680 upvotes and 189,000 views.
Here is what happened since.
Palo Alto: 350 Proposals, Then a Crackdown
The final count: nearly 350 housing proposals submitted under SB 79 in Palo Alto, all near Caltrain and transit stops. But instead of embracing the housing, the city passed emergency temporary implementation regulations — effectively limiting what SB 79 allows:
- Exempting historic properties from the law
- Limiting height and density to 50% of what SB 79 would otherwise allow
- Cutting the window: no new SB 79 applications accepted after June 15 under the interim rules
In other words, Palo Alto took the state law meant to force housing construction and immediately tried to water it down.
Other Cities Scrambling
Palo Alto is not alone. Across California, cities are racing to respond to SB 79:
- Burlingame proposed alternatives to SB 79 rather than accepting the default state standards
- Multiple cities are fighting or negotiating over how much height and density they will actually allow
- California YIMBY called the city-level pushback "disappointing" but noted the law is still forcing conversations that never happened before
The pattern is classic California: state passes housing law, cities find ways to slow it down, developers file proposals anyway, and the whole thing ends up in court or negotiation for years.
What This Means for Buyers and Sellers
If you were hoping SB 79 would flood the market with new homes — it will, eventually. But "eventually" in Bay Area real estate means 3-5 years. The existing housing stock is still your market.
For buyers: With ShopProp, a flat fee starting at $1,995 means your rebate goes toward your down payment, not an agent commission. On a $1.5M Palo Alto home, that is a $35,505 rebate at closing.
For sellers: If you own near a transit stop, the SB 79 activity is actually good for your land value. Development interest means demand. ShopProp lists homes from $4,995 flat — on a $2M Peninsula home, you keep $42,005 more than with a traditional 2.5% agent.
Real ShopProp Closing on the Peninsula
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Sources: Silicon Valley Business Journal, City of Palo Alto. Original coverage by u/ShopProp on r/bayarea (189K views).