Development Projects Transforming Solano County in 2026

From highway improvements to affordable housing and a potential new city, here's what's reshaping Solano County's future.

Solano County is in the middle of a major transformation. Whether you're a longtime resident, thinking about buying your first home, or considering a move to the area, these development projects will directly impact your daily life, property values, and long-term investment potential. As a Solano County real estate agent, Michael Hulsey is tracking these changes closely to help clients make informed decisions in this evolving market.

Let's break down the Solano County development projects that matter most to residents and homebuyers.

Quick Snapshot: Major Projects at a Glance

Transportation Projects That Will Cut Your Commute

If you've ever sat in Highway 37 traffic watching the sun set while barely moving, you'll appreciate what's coming. Several major transportation investments are targeting Solano County's most frustrating bottlenecks.

The Bay Area's First Divergent Diamond Interchange (Vallejo)

The State Route 37/Fairgrounds Drive interchange project is already under construction and represents a $24.9 million investment in Vallejo's infrastructure. Completion is expected by mid-2026.

What exactly is a divergent diamond interchange? It temporarily shifts traffic to the opposite side of the road, eliminating left-turn conflicts and dramatically improving traffic flow. The design has proven highly effective in other states, and this will be the first one in the Bay Area.

Highway 37 Widening: The $500 Million Fix

Governor Newsom signed Assembly Bill 697 in October 2025, clearing the path for the long-awaited Highway 37 improvements to begin construction in 2026. This $500 million project will widen the highway to two lanes in each direction along a 10-mile stretch between Sears Point and Mare Island.

The project includes replacing the Tolay Creek Bridge, extending an eastbound merge lane, and restoring 3.5 miles of degraded tidal salt marsh. It carries approximately 40,000 commuters daily and is notorious for congestion and flooding that sometimes closes the road for days.

Here's the catch: tolls of approximately $4 in each direction are proposed to help fund the project. The widening will also eventually enable transit service between Vallejo and Novato, something currently impossible due to unpredictable congestion.

I-80 Cordelia Truck Scales: Reducing Freeway Backups

Construction started in August 2025 on a $250 million state-of-the-art truck inspection facility that will replace the current Cordelia Truck Scales, which dates back to 1958. The new facility, located 0.7 miles east of the current site, will handle up to 1,000 trucks per hour compared to the current 500-700 trucks per day.

Why does this matter for regular drivers? The current facility often causes truck traffic to back up onto I-80, increasing accident risks and slowing everyone down. The new braided ramp design will eliminate this problem. Completion is targeted for 2029.

Housing Developments Changing the Market

Solano County is seeing housing development at multiple scales, from small infill projects to potentially massive expansions. Here's what's in the pipeline.

Vacaville: Veteran Housing and Major Growth Areas

Victory Gardens is a 208-unit affordable housing project designed to support local veterans. Mutual Housing California and Solano-Napa Habitat for Humanity were selected to develop this project, which will be the first Solano County infill development combining affordable rental and single-family homes in one community. The city approved the project in December 2024, with groundbreaking targeted for summer 2026.

Vacaville is also processing a major specific plan for approximately 508 acres in the East of Leisure Town Growth Area. The draft plan includes around 4,219 residential units at various densities, along with parks, mixed-use areas, and public facilities. An Environmental Impact Report is currently being prepared.

Vallejo: New Subdivisions and Factory-Built Innovation

The Planning Commission in Vallejo recently approved a 130-home development on the site of four abandoned little league baseball fields in East Vallejo. Another 51-unit subdivision called Vista Cove is scheduled for review in January 2026.

Harbinger Homes (formerly Factory OS) continues expanding its modular housing production at the historic Mare Island shipyard. The company produced over 4,000 homes since 2018 and is on track for 10% growth in both 2025 and 2026. Modular construction is seen as one solution for California's housing crisis because projects can progress regardless of weather conditions.

Benicia: Rose Estates and Valero Refinery Redevelopment

Rose Estates is a proposed 1,080-unit development on 527 acres in Benicia, currently under review. The applicant is pursuing this under California's "Builders Remedy" provision and proposes that 20% of units be deed-restricted affordable housing.

Perhaps more significant long-term: the Valero Benicia Refinery is scheduled to close by April 2026, and Signature Development Group has begun assessing the vast site for potential redevelopment. The property includes scenic hills and views of the Carquinez Straits, making it a potentially transformative opportunity for the city.

The Biggest Development Story: California Forever

You've probably heard about this one. California Forever, backed by Silicon Valley investors, owns over 50,000 acres in eastern Solano County. Their original plan to put a ballot measure before county voters in 2024 was withdrawn. But the project didn't die; it evolved.

In October 2025, Suisun City accepted California Forever's application to annex approximately 22,900 acres into the city. This partnership approach bypasses the need for a countywide vote since annexation can be approved through the Local Agency Formation Commission process.

The proposed Suisun Expansion Plan includes:

• Up to 174,000 new homes

• Up to 225,000 jobs

• 147 million square feet of non-residential development

• A planned "walkable" community with transit options

• A 7,100-acre buffer zone protecting Travis Air Force Base operations

A draft Environmental Impact Report is expected in 2026. California Forever has also announced plans for a shipbuilding facility on approximately 1,400 acres near Collinsville, with 40-year union labor agreements already signed.

The project remains controversial. A recent poll showed less than 20% of likely voters support the annexation, with nearly half strongly opposed. Concerns center on water supply, traffic impacts, agricultural land loss, and effects on Travis Air Force Base.

Travis Air Force Base: The Economic Anchor

No discussion of Solano County's development would be complete without mentioning Travis Air Force Base. It's the county's largest employer with over 26,000 people living or working on base, generating $1.6 billion in annual economic impact (some estimates put total impact at $3.7 billion).

The base is transitioning to the new Boeing KC-46 Pegasus air tanker, with new hangars and facilities being built to accommodate the fleet. Approximately 100,000 military and civil service retirees live within 50 miles of the base, with over 15,000 in Solano County spending about $298 million annually in the local economy.

Solano County recently voted to restrict development on vacant land surrounding the base to protect its operations for decades to come. This zoning decision limits land to agricultural use without a special permit, ensuring the base's mission isn't compromised by encroaching development.

Fairfield: General Plan Updates and Infrastructure

Fairfield completed a major General Plan update (Fairfield Forward 2050) in December 2024, establishing the framework for development over the coming decades. The plan focuses on infill development rather than outward expansion, strengthening corridors like Texas Street, and integrating recent planning efforts like the Heart of Fairfield Specific Plan.

The city is also implementing a Sustainable Energy Project that's installing solar facilities across multiple city properties, expected to save nearly $24 million over 25 years while adding over 320 new trees throughout the community.

Infrastructure work continues on Manuel Campos Parkway in the Villages area, with landscape improvements scheduled for spring 2025. The Lopes Road reconstruction project, damaged by 2023 landslides, is expected to begin construction in spring 2026 with FEMA and Federal Highway Administration funding.

What This Means for Solano County Real Estate

These development projects create both opportunities and considerations for anyone involved in the local real estate market.

For buyers: Transportation improvements typically increase property values in surrounding areas. If you're looking at homes near Highway 37 corridors or the Fairgrounds area, improved access could boost your investment. However, construction may cause temporary inconveniences.

For sellers: Major infrastructure investments signal confidence in the area's growth. Highlighting proximity to improved corridors and upcoming amenities can strengthen your property's appeal.

For investors: Watch the California Forever situation closely. If the Suisun Expansion moves forward, it could fundamentally change the housing supply dynamics in Solano County over the next 20-40 years. Travis Air Force Base's continued strength provides economic stability that supports property values countywide.

Frequently Asked Questions

When will Highway 37 construction start?

Construction on the $500 million widening project is scheduled to begin in 2026 following Governor Newsom's signing of AB 697 in October 2025.

Will California Forever actually get built?

The project is moving through the environmental review process with Suisun City. A draft EIR is expected in 2026, but the project still needs approval from multiple agencies and faces significant public opposition.

How will these projects affect traffic during construction?

Expect lane closures and detours, particularly around the Highway 37/Fairgrounds interchange and I-80 near Cordelia. Caltrans maintains updated traffic information at QuickMap (quickmap.dot.ca.gov).

Will tolls be required on Highway 37?

Approximately $4 tolls in each direction are proposed to help fund the project. One lane in each direction would remain free for eligible carpool vehicles.

Is Solano County a good place to buy a home right now?

Solano County remains one of the more affordable areas in the Bay Area region, with strong economic anchors like Travis Air Force Base and growing infrastructure investment. Individual circumstances vary, so speaking with a local real estate professional is the best way to evaluate your specific situation.

Ready to Explore Solano County Real Estate?

Understanding how these development projects affect specific neighborhoods requires local expertise. Whether you're buying your first home, selling to upgrade, or investing in Solano County's future, having the right guidance makes all the difference.

This article was last updated January 2026. Development timelines and details may change. Contact Michael Hulsey for the most current information on Solano County real estate.