Photo above: Lafayette BART station, its parking lots and Highway 24 seen from Cross Hill near Deer Hill Road, Lafayette, California, August 2018. Pi.1415926535, CC BY-SA 3.0, via Wikimedia Commons.
Mostly housing near downtown and BART. The 315-apartment Terraces of Lafayette on Deer Hill Road is approved and waiting on its mass grading and building permits, an 85-condo building is going up at 1001 Oak Hill Road right now, and under a June 2026 lawsuit settlement the city has agreed to consider allowing more homes per acre along Mt. Diablo Boulevard by the end of 2026.
If you’re buying or selling near downtown, Deer Hill Road or Moraga Road, this is the list to check first. Every status below comes from the city, with the date we read it.
Why is Lafayette planning for so many new homes?
Because the state says it has to. Lafayette’s 2023 to 2031 Housing Element plans for 2,114 new housing units, its share of the region’s housing need (City of Lafayette press release on the Housing Action Coalition settlement, June 2026, published by Contra Costa News June 9, 2026).
The state housing department, HCD, certified that plan on March 28, 2025, after the City Council adopted the rezoning it needed on January 13, 2025 (City of Lafayette, “Lafayette’s 2023-2031 Housing Element Receives State Certification,” March 28, 2025, checked September 25, 2026). The city points out that it doesn’t build housing itself. It sets the zoning, and developers apply within it.
What is the Terraces of Lafayette, and when will it be built?
It’s a 315-apartment complex on a vacant 22-acre site at the southwest corner of Deer Hill Road and Pleasant Hill Road, at 3233 Deer Hill Road, next to Highway 24. The city’s projects page lists 14 buildings, seven of them three stories and seven two stories, with 63 of the 315 units below market rate (City of Lafayette, Major Development Projects page, checked September 25, 2026).
When it will be built is the open question. The city lists its status as “Approved. Preliminary grading completed. Mass grading and residential building permits under review.” The same page’s project description still says grading was anticipated to begin in 2026. At the June 22, 2026 council meeting, city staff said four building permits had been submitted and only the first grading permit had been issued, and that grading is generally limited to April through October (City of Lafayette, approved City Council minutes, June 22, 2026). The city has not posted a firm start date, so we won’t give one.
Here’s the short history, from the city’s own records:
- 2011: the application is deemed complete (June 22, 2026 council minutes).
- August 2020: the City Council approves the project with 56 conditions of approval (same minutes).
- 2020 to 2023: a citizens group, Save Lafayette, sues to overturn the approval. The county Superior Court upholds the city in November 2021, the Court of Appeal agrees unanimously in November 2022, and the California Supreme Court denies review on March 15, 2023, ending the case (City of Lafayette press release, published by Contra Costa News, March 17, 2023, checked September 25, 2026).
- 2024: permitted tree removal in September, then a first phase of grading, asphalt removal and drainage work (Major Development Projects page).
What did the council decide about the Terraces in June 2026?
It upheld the approval of a parcel map that merges the site’s 10 lots into one. The Planning Commission had approved the map, and that decision was appealed to the council. On June 22, 2026, the council voted 3 to 1, with one member absent, to adopt Resolution 2026-43 upholding it (City of Lafayette, approved City Council minutes, June 22, 2026).
City staff said at that meeting that the parcel map changes nothing about the approved design, conditions or environmental measures. Public comment was split. Some speakers raised traffic and evacuation concerns about Deer Hill Road and Mt. Diablo Boulevard, and others urged the council to let the project proceed (same minutes). We’re reporting what was said, not taking a side.
What is the downtown upzoning I keep hearing about?
It’s part of a lawsuit settlement. The Housing Action Coalition, a housing advocacy nonprofit, sued the city, saying its Housing Element didn’t follow state law. In June 2026 the city settled. It agreed to consider upzoning 130 acres and to pay $120,080 in attorney’s fees, while stating that it disputes the group’s claims (City of Lafayette press release, published by Contra Costa News, June 9, 2026, checked September 25, 2026).
The city agreed to consider these changes by the end of the year, through its normal public hearings:
- Land north of Mt. Diablo Boulevard now zoned for 60 units per acre: up to 65.
- Land along the north side of Mt. Diablo Boulevard between El Nido Ranch Road and Pleasant Hill Road, now zoned for 35 units per acre: up to 45.
- Land along the south side of Mt. Diablo Boulevard between Mountain View Drive and the western end of Golden Gate Way, plus the parcels between Golden Gate Way and Mt. Diablo Boulevard: from 35 up to 45 units per acre.
- Two more acres added to the De Silva South site, at up to 35 units per acre.
If the city approves those changes, it will no longer count on five parcels owned by faith-based organizations to meet its housing numbers, according to the same release.
“Consider” is the key word. Nothing is rezoned until the Planning Commission and City Council hold hearings and vote. As of September 25, 2026, the rezoning had not appeared on a City Council agenda (September 14 and September 28, 2026) or a Planning Commission agenda (the September 21 meeting was canceled) (City of Lafayette agendas on Granicus, checked September 25, 2026). If you own on or near Mt. Diablo Boulevard and want to know what it could mean for your parcel, ask the Planning Department or a land use attorney. We can’t give legal advice.
What housing projects are already approved or under construction?
Here’s the city’s own list, as of September 25, 2026 (City of Lafayette, Major Development Projects page, with approval dates from the City Council and Planning Commission minutes cited below):
| Project | Address | What it is | City status |
|---|---|---|---|
| 1001 Oak Hill Road | 1001 Oak Hill Road | 85 for-sale units (4 very low income, 7 moderate income), 7 stories, 2,000 sq. ft. of ground-floor commercial space | Council approved 90 units June 9, 2025; Planning Commission approved the cut to 85 on June 1, 2026. Under construction, demolition and grading in summer 2026 |
| Sunflower Hill | 949 Moraga Road | 48 affordable apartments in a four-story building (27 very low income, 20 low income, one manager’s unit) | Approved spring 2026, not yet under construction |
| Oak Hill Place | 3600 Deer Hill Road, across from BART | 17 single-family homes, 3 with attached ADUs, one very low income home | Approved, not yet under construction |
| Madison Park | 3483 Golden Gate Way | 71 units, 9 below market rate, underground parking and a public plaza | Approved, demolition complete, not yet under construction |
| Mount Diablo Condominiums | 3458 Mt. Diablo Boulevard | 30 condominiums (3 below market rate) and one ground-floor commercial unit | Approved by the City Council March 23, 2026 |
| Terraces of Lafayette | 3233 Deer Hill Road | 315 apartments, 63 below market rate | Mass grading and building permits under review |
Two city sources disagree on these projects, so here is what the official records show. For 3458 Mt. Diablo Boulevard, the projects page still says “in public hearings,” but the approved City Council minutes show the council adopted Resolution 2026-24 approving the project on March 23, 2026, by a 4 to 0 vote with one member absent. Those minutes describe 30 condominiums with 55 parking spaces plus one commercial unit, while the projects page lists 31 for-sale units. For 1001 Oak Hill Road, the city’s June 2026 settlement press release calls it 90 rental units, but the Planning Commission’s approved June 1, 2026 minutes show a 6 to 0 vote to cut the approved 90 for-sale units to 85 and the parking from 179 to 155 spaces. We use the minutes, the most recent official records. Ask the Planning Department if you need the final count for either one.
You can already see 1001 Oak Hill Road rising. A large red crane now stands over the site (Bay Area Telegraph, September 17, 2026).
What was finished recently, and what fell through?
Two condo buildings opened in spring 2026: The Brant by Lennar at 3666 Mt. Diablo Boulevard, with 66 condos, 10 of them below market rate, and Blue Oak at 950 Hough Avenue, with 20 condos, 3 of them below market rate (City of Lafayette, Major Development Projects page and June 2026 press release).
Not everything on the list gets built. The same page shows approvals that expired for Lafayette Lane at 3462 Mt. Diablo Boulevard (166 condos, expired November 2023) and Valley View at 1059 Aileen Street (42 apartments, expired as of September 2024). The 12 Samantha Townhomes on Stuart Street were withdrawn in June 2026.
What else is under construction around town?
A few non-housing projects you’ll notice:
- Park Theater, 3519 Golden Gate Way: the old downtown theater is being rebuilt as a two-screen venue with a rooftop terrace. The city says construction is under way.
- Cancer Support Community, 3939 Mt. Diablo Boulevard, just west of the Lafayette Reservoir entrance: a two-story, 12,000 sq. ft. building, with completion planned for winter 2026.
- Lafayette Reservoir outlet tower: EBMUD is doing a $14 million seismic upgrade of the tower (EBMUD, Lafayette Reservoir page, checked September 25, 2026).
The city is also writing more objective design standards for housing projects. The council was set to introduce that ordinance on September 28, 2026, with a second reading on October 13 (City Council agenda, September 28, 2026). And through the end of 2026 the city has cut its development impact fees for new ADUs by 50% (Weekly Roundup, September 18, 2026).
What does this mean if I’m buying or selling nearby?
It means you check the street, not just the house. We won’t predict what any project does to home values, and nobody can do that honestly. Here’s what you can do:
- Look up the address on the city’s Major Development Projects map. It shows every project with a complete application, with the planner’s name and phone number.
- For the Terraces, watch for the mass grading permit. Until it’s issued, there’s no firm start date. If you’re near Deer Hill Road or Pleasant Hill Road, ask the Planning Department about construction hours and truck routes before you commit.
- For anything on or near Mt. Diablo Boulevard, watch the rezoning hearings the city must hold by the end of 2026.
- Sellers: if you know about a nearby project, talk with your agent about how it belongs in your disclosures.
Questions people also ask
When will construction start on the Terraces of Lafayette?
There is no firm date yet. As of September 25, 2026, the City of Lafayette’s projects page lists the Terraces as approved, with preliminary grading completed and the mass grading and residential building permits still under review. City staff told the council on June 22, 2026 that grading work is generally limited to April through October. The project is 315 apartments at Deer Hill Road and Pleasant Hill Road.
Is downtown Lafayette being rezoned for more housing?
The city has agreed to consider it. Under a June 2026 settlement with the Housing Action Coalition, Lafayette will hold public hearings by the end of 2026 on raising allowed density along Mt. Diablo Boulevard, from 60 to 65 units per acre in some areas and from 35 to 45 in others. Nothing changes until the City Council votes on it.
How many homes does Lafayette have to plan for?
Lafayette’s 2023 to 2031 Housing Element plans for 2,114 new housing units, according to the city’s June 2026 press release on the lawsuit settlement. The state housing department certified the plan on March 28, 2025. The city sets zoning but does not build housing itself, so the actual number built depends on which projects developers complete.
What is being built at 1001 Oak Hill Road in Lafayette?
A seven-story mixed-use building with 85 for-sale units, 11 of them priced for very low or moderate income buyers, plus 2,000 square feet of ground-floor commercial space and 155 parking spaces. The Planning Commission approved that version, down from 90 units, on June 1, 2026, and the city lists it as under construction.
Your next step
Thinking about a home near one of these sites? Send us the address. We’ll pull the projects around it and the recent sales on that street so you’re deciding with facts. Ask a Lafayette agent on our team or call (510) 949-5525.
More on Lafayette: Living in Lafayette, CA · Selling a home in Lafayette · What’s my home worth?
By Bill Davis, DRE #01880656, The Davis Team at eXp Realty, Lafayette, CA. Updated September 25, 2026.
Sources
- City of Lafayette press release, “Supreme Court Says Approval of Terraces of Lafayette Development Can Move Forward,” as published by Contra Costa News, March 17, 2023: contracosta.news (checked September 25, 2026)
- City of Lafayette, Major Development Projects page: lafayette.icitywork.com (checked September 25, 2026)
- City of Lafayette, approved City Council minutes, March 23, 2026 (3458 Mt. Diablo Boulevard, Resolution 2026-24) and June 22, 2026, City Council agendas for September 14 and September 28, 2026, and Planning Commission agendas through September 21, 2026: lafayette.granicus.com (checked September 25, 2026)
- City of Lafayette, approved Planning Commission minutes, June 1, 2026 (1001 Oak Hill Road, Resolution 2026-04): lafayette.granicus.com (checked September 25, 2026)
- Bay Area Telegraph, “Cranes Over Lafayette As Huge Construction Project Near BART Moves Ahead,” September 17, 2026: bayareatelegraph.com (checked September 25, 2026)
- City of Lafayette, “Lafayette’s 2023-2031 Housing Element Receives State Certification,” March 28, 2025: lovelafayette.org (checked September 25, 2026)
- City of Lafayette press release, “Lafayette and Housing Action Coalition Settle Lawsuit over Housing Element Laws,” as published by Contra Costa News, June 9, 2026: contracosta.news (checked September 25, 2026)
- City of Lafayette, The Weekly Roundup, September 18, 2026: lovelafayette.org (checked September 25, 2026)
- East Bay Municipal Utility District, Lafayette Reservoir page: ebmud.com/recreation/lafayette-reservoir (checked September 25, 2026)