Berkeley’s Housing Policy Shifts: Embracing Middle Housing and Navigating Labor Standards

Berkeley’s Housing Policy Shifts: Embracing Middle Housing and Navigating Labor Standards

In a significant move to address housing affordability, the Berkeley City Council unanimously approved the Middle Housing Ordinance in June 2025. This policy allows for the construction of small apartment buildings, such as duplexes and triplexes, across most of the city, excluding high fire-risk zones in the hills. The ordinance aims to provide more housing options for middle-income residents and young families, marking a departure from the city’s century-old single-family zoning policy. Councilmember Rashi Kesarwani highlighted that these units would receive streamlined, ‘by-right’ approval, facilitating quicker development processes. [Source: KQED]

However, the city’s housing initiatives have also sparked debates over labor standards. In February 2026, the City Council approved two high-rise developments that utilized California’s ‘density bonus’ law to bypass local labor requirements. These requirements, established in 2023, mandate health care coverage and apprenticeship programs for workers on large projects. While the state law allows exemptions for projects including affordable housing, labor groups expressed concerns over the potential impact on workers’ rights and benefits. [Source: San Francisco Chronicle]

As Berkeley continues to evolve its housing policies, balancing the need for increased housing supply with labor protections remains a complex challenge for the community.