Entitlement and Affordability Challenges Persist... Plus More Development News
News from SoCal Development Industry
Moreno Valley Planners Recommend Denial for 37 Units
Source: citizenportal.ai
The Planning Commission voted 5-1 to deny a General Plan Amendment and rezone from R-5 to RS-10 for a 4.81-acre single-family PUD, despite staff recommending approval.
Commissioners cited inconsistency with the city’s ongoing comprehensive General Plan update and noted the proposed mid-$500,000 homes failed to meet lower-income RHNA targets.
The denial of the land-use changes de facto rejects the project’s conditional use permit and tentative tract map, leaving the developer 10 days to appeal to the City Council.
AI-Driven Mobile Robotic Factories Target SoCal Fire Rebuilds
Source: cbsnews.com
Cosmic Buildings is deploying on-site ‘mobile robotic factories’ to construct panelized framing and roof systems, reducing project timelines from years to approximately six months.
The startup is currently scaling operations in Southern California with 20 to 25 homes underway in high-risk areas, including the Palisades and Eaton wildfire zones.
The automated construction method targets the persistent industry labor shortage and aims to reduce total project costs by several hundred thousand dollars per unit.
SoCal Housing Crisis: Orange, LA, and San Diego Counties Lead Nation in Unaffordability
Source: worldpropertyjournal.com
Orange County ranks as the most cost-burdened market in the U.S., with homeownership costs consuming 90.3% of local wages, followed closely by Los Angeles (67.5%) and San Diego (67.4%).
While affordability remains near historic lows, Los Angeles and San Diego counties saw wage growth exceed home price growth in Q4 2025, bucking the national trend seen in 43% of other markets.
A decline in 30-year fixed mortgage rates to 6.15% triggered a modest quarter-over-quarter affordability improvement in 86% of counties, even as national home prices remain 54% higher than five years ago.
Riverside Clears CEQA Hurdle for Major Convention Center Mixed-use Project
Source: raincrossgazette.com
The City Council certified an EIR for a ‘maximum development envelope,’ allowing up to 168 residential units, 376 hotel rooms, and 220,000 square feet of office space to proceed without further CEQA review.
The unanimous vote denied appeals from hospitality unions and environmental groups who argued the review was premature and failed to properly analyze vehicle miles traveled (VMT) and air quality risks.
This certification concludes a seven-year process to entitle a downtown parking lot for a 189,000-square-foot convention center expansion alongside high-density mixed-use components.
Mid County Parkway Expansion in Riverside County Receives Funding
Source: highlandernews.org
The project will widen an eight-mile segment of the Ramona Expressway between Perris and San Jacinto, including a new bridge over the San Jacinto River and a raised median.
Construction is slated to begin in February 2026 and conclude by June 2028, expanding the current two-lane road into a higher-capacity corridor connecting to the 215 Freeway.
The $107 million RCTC contract involves critical infrastructure improvements and dedicated wildlife crossings, despite long-standing local opposition regarding eminent domain.
Trump Proposes Federal Ban on Institutional Investors Buying SFRs
Source: presstelegram.com
The administration plans to call on Congress to codify a ban on large institutional investors purchasing single-family homes to address rising housing costs.
Market data shows institutional investors accounted for only 1% of 2024 home purchases, with some of the fastest-growing markets having virtually no institutional presence.
Industry analysts maintain that housing affordability is driven by supply scarcity from restrictive zoning and permitting rather than corporate investment.
Corona Advances North Mall Mixed-Use Project
Source: riversiderecord.org
The proposed redevelopment includes 100,000 square feet of retail and entertainment space, a hotel, and at least 300 housing units with a 25% affordable component.
The City Council is pursuing a Surplus Land Act (SLA) exemption to maintain control over design and developer selection, citing risks of losing site control under standard SLA procedures.
Entitlement efforts are moving forward despite resident concerns regarding traffic infrastructure and local opposition to prioritizing residential units over community amenities.
Newport Beach Ballot Measure Seeks to Slash Housing Pipeline from 8,174 to 2,900 Units
Source: latimes.com
Voters will decide in November 2026 whether to reject the city’s state-mandated housing element and cap total development at 2,900 units, including projects already in the pipeline.
The ballot initiative was funded by a $150,000 contribution from Ken Picerne, CEO of the Picerne Group, who currently has multiple large-scale luxury projects under construction or approved near John Wayne Airport.
City officials have characterized the measure as potentially self-serving, noting it could limit future competition for existing developers while aligning with resident demands for fewer market-rate units.
KB Home Launches Two New Communities at Ontario’s Compass Pointe Starting From $760k
Source: prnewswire.com
The Meridian and Solstice developments offer two-story floor plans with up to five bedrooms and 3.5 baths, targeting the Inland Empire’s demand for spacious, move-in ready residential product.
Located at the intersection of Haven Avenue and East Parkview Street, the site provides strategic access to major regional transit corridors including Highway 91, Highway 60, and Interstates 15 and 10.
The communities are adjacent to the future 340-acre Ontario Grand Park and feature ENERGY STAR certified construction along with planned amenities such as a pool, cabana, and playground.
Oceanside Pivots to Corridor Infill, Drops Clustered Housing
Source: sandiegouniontribune.com
The city has removed ‘clustered housing’ provisions for the 3,500-acre South Morro Hills agricultural region, opting to maintain 2.5-acre minimum lot sizes rather than allowing higher-density residential pockets among farms.
Revised General Plan guidelines now prioritize high-density development along ‘smart and sustainable corridors’ including Mission Avenue, Oceanside Boulevard, and Vista Way to leverage existing transit infrastructure.
A 45-day public comment period ending Feb. 1 is open for the updated General Plan draft, Climate Action Plan, and Environmental Impact Report (EIR), which reflect the shift toward transit-oriented infill development.
Coachella Valley Cities Cooperate on Power to Unlock Development
Source: riversiderecord.org
The $42.6 million project utilizes a cost-sharing model between municipalities and private developers to replace the previous cost-prohibitive ‘single-developer’ funding requirement.
Agreement participants are guaranteed ‘will-serve’ letters, enabling property owners to immediately begin the city’s planning and entitlement process for new developments.
Scheduled for completion in 2028, the substation will provide 30 MVA of capacity to the region, supporting an estimated 8,000 new residential and commercial customers.
Home Price Growth Hits 14-Year Low as Market Eyes 2026 Spring Momentum
Source: businesswire.com
National home price growth slowed to a 14-year low of 1% year-over-year in November 2025, signaling a significant period of market stabilization.
Economists forecast a re-acceleration of price gains in spring 2026, contingent on declining mortgage rates releasing pent-up demand in inventory-constrained markets.
While 2026 appreciation is expected to remain below the long-term 4-5% average, supply shortages in desirable metros are likely to maintain competitive conditions for buyers.
US Housing Turnover Hits 30-Year Low; LA Sales Fall to Fewer Than 15 Per 1,000
Source: msn.com
National housing turnover reached its lowest level in at least 30 years, with Los Angeles ranking among the slowest markets at fewer than 15 sales per 1,000 homes year-to-date.
A persistent ‘rate-lock’ effect continues to stifle inventory as over 70% of U.S. mortgage borrowers hold rates below 5%, significantly lower than current market rates of 6% to 7%.
Market analysts from Redfin and Zillow forecast that mortgage rates will remain elevated through 2025, indicating a prolonged period of stagnation for the existing home market.