Oakland's Elmhurst prepares for rezoning vote to enable denser housing

Elmhurst sits one vote away from rezoning that would allow multifamily projects on blocks now limited to single-family homes.

City staff completed the draft map for the East Oakland rezoning initiative in late June 2026, and the Planning Commission is scheduled to forward its recommendation to the full council on August 4. The change targets underused commercial strips where current rules cap buildings at two stories. Oakland needs to add 29,000 housing units by 2031 under state rules adopted in 2023, and Elmhurst offers one of the few pockets with available parcels near transit.

The neighborhood runs along 98th Avenue from the Hegenberger Road overpass east to the San Leandro line. It sits minutes from the Oakland Coliseum BART station and the Eastmont Town Center, where the county's social services hub draws daily foot traffic. Local groups such as the East Oakland Collective have tracked rising investor interest in auto-repair lots and vacant storefronts along those corridors since the start of 2025.

Median sale prices for single-family homes in Elmhurst reached $685,000 in the first half of 2026, according to county assessor data released last week. That figure sits 14 percent below the citywide median yet marks a 22 percent jump from the same period two years earlier. Rents for two-bedroom apartments average $2,150, still the lowest among Oakland's BART-adjacent neighborhoods.

Investor Calculations Shift With Density Rules

Rezoning would lift height limits to four stories on roughly 180 acres now zoned for low-density use. Developers have already filed preliminary inquiries for 320 units on three Hegenberger-adjacent parcels, city records show. Those projects would qualify for the state's density bonus if they include 20 percent affordable units, a threshold that becomes easier to meet once base zoning rises.

Smaller property owners along 98th Avenue say they have fielded calls from out-of-town buyers offering 10 to 15 percent above assessed value. One lot at 98th and MacArthur that sold for $410,000 in 2024 now carries an asking price of $595,000 after a broker listed it as "upzoning candidate."

Next Steps for Buyers and Residents

The council must adopt the final map before the end of September if projects are to break ground before the 2027 building season. Residents who want to track specific parcels can review the interactive map posted on the city's planning portal or attend the August 4 hearing at City Hall. Investors looking at Elmhurst should confirm sewer capacity and school-district enrollment data before closing, both of which the rezoning package leaves unchanged.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.