I’ve spent over 20 years helping clients find their dream homes in Orange County’s coastal communities. With California’s Senate Bill 549 (2025-2026) set to reshape the housing market in Pacific Palisades after the January 2025 wildfires, and new pressures to rebuild with all-electric appliances, I’m seeing affluent buyers turn to Orange County’s coastal enclaves for the luxury, stability, and lifestyle they seek—without the burden of Los Angeles’ Mansion Tax or restrictive rebuilding rules. In this article, I’ll explain how SB 549 and electrification incentives could change Pacific Palisades, why the Port Streets in Newport Beach is a top choice for these buyers, and how Orange County’s coastal communities offer the perfect alternative.

What Is SB 549, and How Will It Impact Pacific Palisades?

SB 549, the Second Neighborhood Infill Finance and Transit Improvements Act: Resilient Rebuilding Authority for the Los Angeles Wildfires, passed the California Senate in May 2025 and is now under Assembly review. It creates a Resilient Rebuilding Authority to accelerate recovery in fire-ravaged areas like Pacific Palisades, where the January 2025 Palisades Fire destroyed over 5,500 homes, including 1,300 multifamily units. The bill’s key provisions are:

• Pushing Affordable Housing: It requires at least 40% of funds in enhanced infrastructure financing districts (EIFDs) to support low-income housing, such as apartment complexes, to replace rentals lost in the fires.
• Streamlining Development: The authority can fast-track permitting and zoning, enabling denser housing near transit stops (within half a mile), which could alter Pacific Palisades’ low-density character.
• Buying Fire-Damaged Lots: The authority can purchase damaged properties at fair market value from willing sellers to coordinate rebuilding and prevent speculative land grabs.

Pacific Palisades, with average home prices of $3.5 million and a median household income of $325,000, is known for its exclusive single-family estates. SB 549’s focus on affordable, multifamily housing could shift this upscale identity, making it less appealing for buyers prioritizing privacy and prestige.

The Push for All-Electric Rebuilding in Pacific Palisades

Adding to the changes, Los Angeles is heavily incentivizing homeowners to rebuild with all-electric appliances as part of the recovery process. While not strictly required, the 2025 California Building Energy Efficiency Standards, effective January 1, 2026, promote electric appliances like heat pumps to cut carbon emissions. Mayor Karen Bass’s executive order further streamlines permitting for all-electric rebuilds, meaning homeowners who choose gas appliances—like stoves or heaters—face longer delays, sometimes years. Climate activists estimate all-electric homes save $7,000–$10,000 by avoiding gas pipe installation, but many Pacific Palisades residents feel pressured by these policies, as they limit flexibility in rebuilding their dream homes. With only 19 permits issued by April 2025 despite 181 applications, these delays add frustration for luxury homeowners.

How SB 549 and Electrification Could Change Pacific Palisades’ Housing Market

Having worked in luxury real estate for two decades, I see SB 549 and the all-electric push creating changes in Pacific Palisades that may concern affluent buyers:

• More Apartments, Less Exclusivity: The 40% affordable housing mandate could lead to projects like a proposed eight-story, 100-unit apartment building on a burned lot. This contrasts with Pacific Palisades’ sprawling estates, potentially reducing its high-end appeal.
• Reduced Local Control: Expedited permitting for both housing and all-electric rebuilds may bypass traditional zoning, raising concerns from residents like Councilwoman Traci Park about losing influence over their neighborhood’s future. Denser developments and restricted appliance choices could clash with the area’s aesthetic.
• Market Uncertainty: Rebuilding is slow, and the push for all-electric homes adds complexity. The prospect of more apartments, regulatory changes, and permitting delays could make luxury buyers wary of impacts on property values.

While SB 549 doesn’t force property sales (purchases are voluntary at fair market value), economic pressures—like high rebuilding costs, insurance gaps, or permitting delays for gas appliances—may prompt some homeowners to sell to the authority, paving the way for affordable housing that could alter Pacific Palisades’ luxury character.

Why Orange County’s Coastal Communities Are the Perfect Alternative

As Pacific Palisades faces these changes, Orange County’s coastal communities—like those in Newport Beach—offer the luxury, stability, and coastal lifestyle affluent buyers seek, with the added benefits of no Mansion Tax and fewer rebuilding restrictions. Unlike Los Angeles, where the Mansion Tax (Measure ULA) imposes a 4% tax on home sales over $5 million and 5.5% over $10 million, Orange County has no such tax, saving buyers significant costs on high-end properties. Plus, our communities face no mandates pushing all-electric appliances, giving you more freedom to design your dream home. Here’s why Orange County stands out:

• Timeless Exclusivity: Coastal communities in Orange County feature gated enclaves and ocean-view estates, offering the privacy and prestige Pacific Palisades buyers value. Homes in these areas, often priced from $3 million to $40 million, cater to those seeking upscale, single-family living.
• Stable Market: Unlike Pacific Palisades, Orange County’s coastal markets face no regulatory overhauls like SB 549 or electrification pressures. Strong community governance ensures these neighborhoods retain their high-end character, giving buyers confidence in their investments.
• Unrivaled Coastal Lifestyle: With pristine beaches, fine dining, and shopping at places like Fashion Island, Orange County delivers a vibrant yet serene lifestyle. Just an hour from Los Angeles, it balances urban access with coastal tranquility.
• Strong Investment Value: The luxury market here is thriving. A 5,000-square-foot home with ocean views can command $10–$30 million, with steady appreciation. These communities remain a haven for single-family estates, free from mandates pushing multifamily developments or all-electric appliances, and without the added cost of the Mansion Tax.

Why Port Streets Is Desirable for Pacific Palisades Buyers

Among Orange County’s coastal gems, the Port Streets in Newport Beach stands out as a top destination for affluent buyers relocating from Pacific Palisades. Having sold homes here since 2005, I know why it’s a perfect fit:

• Family-Friendly Excellence: Port Streets is renowned for its safe, tight-knit community and top-rated schools, like Andersen Elementary, which rivals the best in Pacific Palisades. It’s ideal for families seeking a nurturing environment for their children.
• Luxurious Yet Approachable Homes: The neighborhood offers spacious, custom homes—many on oversized lots—priced from $3 million to $8 million. These properties provide the same single-family exclusivity Pacific Palisades buyers love, without the threat of denser developments or appliance restrictions.
• Vibrant Community Spirit: Events like the Port of July bike ride, which I’ve helped promote as a beloved tradition with hundreds of participants, foster a sense of belonging. This mirrors the community feel Pacific Palisades residents may fear losing.
• Prime Location: Nestled near Fashion Island and Crystal Cove State Park, Port Streets offers easy access to shopping, dining, and outdoor activities, making it a seamless transition for those accustomed to Pacific Palisades’ coastal lifestyle.
• Investment Potential: With steady demand and limited inventory, Port Streets homes appreciate reliably, offering a secure investment for buyers wary of Pacific Palisades’ uncertainties.

For Pacific Palisades families, Port Streets delivers the perfect blend of luxury, community, and stability, making it a natural choice as SB 549 and electrification pressures reshape their current market.

Why SB 549 and Electrification Could Send Buyers to Orange County

As Pacific Palisades faces change, I’m seeing buyers prioritize Orange County’s coastal communities for clear reasons:

• Preserving Luxury: If you’re used to Pacific Palisades’ single-family estates, Orange County’s coastal enclaves, like Port Streets, offer the same exclusivity without the risk of denser developments or forced electrification.
• Avoiding Uncertainty: The slow rebuilding, regulatory shifts, and permitting delays for gas appliances in Pacific Palisades create risks for luxury buyers. Orange County’s stable market, free from the Mansion Tax and electrification mandates, offers peace of mind.
• Lifestyle Continuity: Our coastal communities mirror Pacific Palisades’ upscale, coastal vibe but with greater certainty. Port Streets, in particular, welcomes families with top schools and community traditions.

Let’s Find Your Coastal Orange County Dream Home

If you’re a Pacific Palisades homeowner or buyer rethinking your options, now is the time to explore Orange County’s coastal communities. SB 549 and the push for all-electric rebuilds may reshape Pacific Palisades, but areas like Port Streets offer a stable, luxurious alternative that defines coastal California living—without the extra cost of Los Angeles’ Mansion Tax or restrictive appliance rules. Contact me at Carter Weir to discover the best properties in Orange County. Visit Carterweir.com or call to schedule a consultation. Let’s secure your place in a premier coastal community.

Sources: California Legislative Information (https://leginfo.legislature.ca.gov), Los Angeles Times (March 3, 2025, March 21, 2025), The Desert Review (July 15, 2025), NPR (April 24, 2025), California Energy Commission (September 10, 2024).