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Market UpdatesPublished July 1, 2025
How Governor Newsom’s 2025 Budget Could Boost El Dorado Hills Real Estate for Homeowners, Buyers, and Sellers
If you’re a homeowner, buyer, or seller in El Dorado Hills, you know the local real estate market is competitive, with stunning homes and a tight supply driving up prices. The good news? Governor Gavin Newsom’s 2025-2026 California state budget, signed on June 27, 2025, includes game-changing reforms to speed up housing approvals and increase home construction across the state—including in El Dorado Hills real estate markets. These changes could reshape the El Dorado Hills housing landscape, making it easier to buy, sell, or stay in this desirable community. Here’s what the budget means for you and why it’s a big deal for El Dorado Hills real estate.
What’s in the Budget for El Dorado Hills Housing?The $321 billion budget tackles California’s housing shortage with reforms designed to cut red tape and accelerate homebuilding, especially in high-demand areas like El Dorado Hills. Through Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131), the state is streamlining the California Environmental Quality Act (CEQA) and permitting processes to get more homes built faster. Here’s how these changes could impact El Dorado Hills real estate:
- CEQA Reforms for Quicker Approvals: CEQA often slows down housing projects with lengthy environmental reviews. The budget introduces exemptions for “infill” projects—new homes built in already-developed areas of El Dorado Hills—and speeds up approvals for affordable housing and farmworker units. This means more El Dorado Hills homes for sale could hit the market sooner.
- Streamlined Permitting for El Dorado Hills: The budget expands the Permit Streamlining Act, shortens Coastal Commission appeal timelines (though less relevant for inland El Dorado Hills), and strengthens the Housing Accountability Act. These changes reduce delays, allowing developers to build El Dorado Hills real estate projects faster, from luxury homes to affordable condos.
- Boosting Affordable Housing in El Dorado Hills: The reforms prioritize affordable housing, with projects like those offering 100% affordable units or taller buildings (over 85 feet) requiring prevailing wages for streamlined approvals. Nearly $103 million in Homekey+ awards will also fund over 315 permanent supportive housing units statewide, potentially easing pressure on El Dorado Hills real estate by diversifying housing options.
- Cost Stability for Developers: By freezing new residential building standards through 2031 (except for emergency, fire, and conservation updates), the budget helps developers control costs. This could lead to more affordable El Dorado Hills homes for sale, benefiting buyers in this premium market.
- Infill and Transit-Oriented Growth: While El Dorado Hills isn’t a major transit hub, the focus on infill development could encourage new projects in underused lots, adding to the local housing stock and giving buyers more choices in this sought-after community.
For El Dorado Hills Homeowners
If you own a home in El Dorado Hills, these reforms could stabilize the El Dorado Hills real estate market by increasing housing supply. More homes mean less competition, potentially easing property tax pressures and making your home’s value more predictable. If you’re thinking of selling, new developments could attract buyers looking for modern El Dorado Hills homes for sale, especially in family-friendly neighborhoods like Serrano or The Promontory.
For El Dorado Hills Home BuyersBuyers in El Dorado Hills face median home prices well above $900,000, often competing for limited inventory. The budget’s push to build more homes—especially affordable ones—could make El Dorado Hills real estate more accessible. Faster approvals mean developers can deliver new El Dorado Hills homes for sale sooner, offering you more options, from single-family homes to townhouses. Infill projects could also bring new developments to central El Dorado Hills, blending luxury with convenience near top-rated schools and amenities like Town Center.
For El Dorado Hills SellersIf you’re selling in El Dorado Hills, the increased housing supply might mean more competition, but it’s a net positive. New El Dorado Hills real estate projects could draw buyers seeking modern homes in this scenic foothill community, boosting demand for existing properties. With penalties for cities that block housing (up to $50,000 per month under SB 1037), El Dorado County is incentivized to approve projects, ensuring a steady flow of new homes to balance the market.
Potential Challenges for El Dorado Hills Real EstateWhile the budget is a win for El Dorado Hills real estate, some concerns linger. Environmental groups worry that CEQA reforms could weaken protections, though safeguards remain for sensitive lands. In El Dorado Hills, where natural beauty is a draw, new developments will need to balance growth with preserving the area’s charm. Additionally, the budget lacks significant new funding for affordable housing, so El Dorado Hills may not see as many low-cost units as urban areas. Still, the $1.033 billion in Proposition 1 bond funds for Homekey+ could indirectly ease market pressure by addressing homelessness statewide.
The Big Picture for El Dorado Hills Real EstateGovernor Newsom’s budget aims to build 2.5 million homes by 2030, including 1 million affordable units, tackling California’s housing crisis head-on. For El Dorado Hills, this means a potential influx of new El Dorado Hills homes for sale, which could cool the overheated market and make homeownership more attainable. Since Newsom took office, California has slowed homelessness growth (3% in 2024 vs. 18% nationally), and El Dorado Hills could benefit from a more balanced housing market.
Whether you’re a homeowner enjoying El Dorado Hills’ rolling hills, a buyer searching for your dream home, or a seller looking to capitalize on the market, these reforms could make El Dorado Hills real estate more dynamic and accessible. Expect more inventory, faster construction, and potentially better affordability in this vibrant community.
Stay Ahead in the El Dorado Hills Real Estate MarketWant to know how these changes will affect El Dorado Hills real estate? Contact a local El Dorado Hills real estate agent to track new developments and market trends. You can also visit www.gov.ca.gov for budget updates or check with the El Dorado County planning department for local housing plans. For buyers and sellers, exploring neighborhoods like Kalithea or Blackstone could reveal new opportunities as developers break ground.
The El Dorado Hills real estate market is poised for change, and Newsom’s 2025 budget could be the key to unlocking more El Dorado Hills homes for sale. Are you ready to buy, sell, or stay in this beautiful community? Share your thoughts below and let’s talk about the future of El Dorado Hills real estate!
Sources: Governor of California (www.gov.ca.gov) (www.gov.ca.gov), CalMatters, Los Angeles Times, Housing California
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