July 25, 2025 | By Boutique Realty
Every year, Sacramento passes new real estate regulations, and 2025 is no different. This year’s changes affect homeowners, buyers, and investors — with a focus on housing supply, sustainability, and consumer protections.
Accessory Dwelling Units (ADUs) Get Easier
California continues to champion ADUs (granny flats, garage conversions, and backyard cottages) as a solution to the housing shortage. New laws further streamline the process:
- Shorter permitting timelines — many cities must now approve ADU applications within 60 days.
- Reduced fees for small ADUs to encourage more builds.
- HOA restrictions eased — some homeowners’ associations can no longer ban ADUs outright.
This is great news for homeowners looking to generate rental income or add value to their properties.
Water Use Restrictions Expand
As drought conditions persist, California has introduced more water conservation laws. Some highlights:
- Non-functional turf (like grass in medians or purely decorative lawns) is now banned in many new developments.
- Homeowners may face stricter irrigation rules and inspections.
- Rebates are available for swapping lawns for drought-tolerant landscaping.
These rules can impact landscaping costs but also create opportunities for eco-friendly upgrades.
Property Tax Transparency
Starting this year, sellers must provide buyers with clear disclosures about supplemental property taxes. These taxes, assessed after a sale, often surprise new homeowners with unexpected bills. The goal is to improve transparency and avoid unpleasant surprises after closing.
Why These Laws Matter
Failing to comply with new regulations can lead to fines or delayed transactions. Being proactive — whether by preparing ADU plans properly or updating landscaping — saves money and avoids stress.