California’s 2026 Election Results: What Homebuyers and Sellers Need to Know

California voters approved two major housing measures in the Nov. 3, 2026, midterm election, with the potential to expand homeownership opportunities and fund affordable housing.

But what could these changes mean if you’re hoping to buy your first home, sell your current property, or simply find a more affordable place to live?

Proposition 37 creates a new financing program for eligible buyers of newly built homes, while Proposition 1 authorizes billions in funding primarily for affordable rental housing, along with homeownership assistance and veterans’ loans.

Meanwhile, several cities approved local measures that could change real estate transfer taxes, rental rules, and housing development.

Here’s a breakdown of the California housing-related election results and how they could affect buyers, sellers, homeowners, and renters.

Election note: Results remain unofficial until certified. California’s statewide election results are scheduled for certification on Dec. 11, 2026.

California’s 2026 housing election results at a glance

Two statewide housing propositions passed, along with several local measures that could affect real estate transactions, housing costs, and development.

The biggest question is how quickly these changes will reach consumers — and whether they could make buying a home more affordable or influence California’s housing supply.

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Proposition 37: New assistance for California homebuyers

For Californians struggling to save enough money to buy a home, Proposition 37 could provide a new path to homeownership.

The voter-approved measure authorizes the California Housing Finance Agency (CalHFA) to issue up to $25 billion in revenue bonds to fund a new down payment assistance program. Eligible buyers could obtain a fixed-rate second mortgage covering up to 17% of a qualifying home’s purchase price.

Unlike a grant, this assistance is a loan that borrowers must repay. Buyers would still need to qualify for a primary mortgage and make payments on both loans.

Who qualifies for Proposition 37 assistance?

According to California’s official voter information guide, borrowers must:

• Have lived in California for at least one year.
• Earn less than twice their area’s median income.
• Contribute a down payment of at least 3% of the purchase price, using funds other than grants or borrowed money.
• Occupy the purchased property as their home.
• Participating buyers must retain a licensed California real estate agent or broker.
• Purchase a newly constructed home or a qualifying property converted from nonresidential use, with a price below approximately $1 million to $1.5 million, depending on the county.

Note: Buyers do not have to be first-time homebuyers. The requirement is that they be the first purchasers of the qualifying new property.

The program could be particularly helpful for middle-income renters who can afford monthly housing payments but struggle to accumulate the upfront cash needed to buy.

“Prop 37 will help most where a household earns a solid income but hasn’t saved a big down payment. Think young professionals, teachers, nurses, first responders, and growing families who can handle a monthly payment but can’t put 20% down,” says Ed Kaminsky, a top-rated Los Angeles-area real estate agent with 39 years of experience.

What could Proposition 37 mean for home sellers?

Because the program applies to qualifying new homes rather than traditional resale properties, it could also influence competition between builders and homeowners selling existing houses.

In markets with significant new construction, buyers who qualify for assistance may find new homes more financially accessible. Sellers of existing homes may need to pay closer attention to builder incentives, competing inventory, and pricing.

“This will give builders a huge advantage, which could help them move their inventory. I think resale owners will have to consider offering other types of incentives to attract homebuyers and, of course, be price competitive,” Kaminsky says.

The California Association of Realtors, which sponsored the initiative, celebrated its passage as a way to expand homeownership and encourage construction.

However, the program’s reach will depend on bond financing, loan terms, and how many qualifying homes builders bring to market.

“The barriers are still real,” Kaminsky says. “The biggest barrier is supply: Prop 37 helps with financing, but it doesn’t build more homes, cut land costs, or speed up approvals. It’s a useful tool, but it won’t reset the market by itself.”

The program also has purchase-price limits, meaning some newly built homes won’t qualify. For resale sellers, the competitive impact may be greatest in communities where enough eligible new homes are available.

Proposition 1: More funding for affordable rental housing and homeownership

While Proposition 37 focuses on helping middle-income households purchase new homes, Proposition 1 targets a different housing need: affordable rentals.

Voters approved $11.25 billion in housing bonds, with most of the funding going toward building and preserving affordable rental housing. Smaller portions will support homeownership assistance, veterans’ home loans, and other housing programs.

According to the California Legislative Analyst’s Office, the funding includes:

• $7.2 billion to construct, acquire, or rehabilitate affordable rental housing.
• $1.1 billion for homeownership programs, including assistance for eligible first-time buyers.
• $1.25 billion to support home loans for California veterans.
• $1.7 billion for farmworker, student, and tribal housing, infrastructure, and local housing initiatives.

Note: Proposition 1 authorizes $11.25 billion in bonds: $10 billion for housing programs, to be repaid from California’s General Fund, and $1.25 billion for veterans’ home loans, to be repaid through participating veterans’ mortgage payments. By comparison, Proposition 37’s revenue bonds will be repaid through participating homebuyers’ mortgage payments, not the state’s General Fund.

The Legislative Analyst’s Office estimates the funding could support up to 40,000 affordable multifamily rental units and help as many as 40,000 households with homeownership, including veterans.

For renters, this could eventually mean more affordable housing choices. For prospective buyers, it could mean additional access to assistance programs. For existing homeowners and sellers, the longer-term impact may depend on whether California can meaningfully expand its housing supply.

Realtor.com senior economist Joel Berner called Proposition 1 “one piece of the puzzle,” pointing out that additional funding doesn’t directly address lengthy approval processes or expensive land.

“What it won’t do is lower home prices,” Kaminsky says. “The money gets spread across the whole state over several years, and it doesn’t fix our biggest problems: not enough supply, high land and construction costs, and slow approvals.”

He adds, “For the typical buyer in a coastal market like the South Bay, I don’t expect it to move home sales in any meaningful way. It’s a helpful step for affordable rentals and veterans, but it’s not a solution for the purchase market.”

Will the election results affect California home prices and inventory?

California’s newly approved housing measures could influence home prices, buyer demand, and inventory, but the effects will likely vary by location and take time to emerge.

Proposition 37 could increase demand for qualifying newly built homes by helping more middle-income households afford a purchase. That’s encouraging for buyers who’ve struggled to save a down payment, but additional purchasing power could also increase competition for eligible properties.

“Here in the South Bay, most of what sells is resale, so the eligible inventory is thin. There are also price caps, and many new coastal homes are priced above them,” Kaminsky explains.

Meanwhile, Proposition 1 could gradually expand California’s housing supply, primarily through affordable rental housing. However, because most of the funding is directed toward rentals rather than homes for sale, its impact on the traditional home purchase market may be less noticeable.

Neither measure guarantees lower home prices. Mortgage rates, construction costs, job growth, and existing housing inventory will continue to influence California’s real estate market. Kaminsky believes buyer confidence also plays a major role.

“I really see this making a very small impact on the market. I feel the market is driven by fear and belief. You either believe you are going to make money by buying a home or you are going to lose money,” Kaminsky says.

What does all this mean for California home sellers?

• Proposition 37 could increase competition: If you’re selling near new construction, eligible buyers may find newly built homes more attractive because of the financing assistance. You may need to compete with builder incentives, adjust your asking price, or offer concessions.
• Proposition 1 may have a longer-term impact: Most funding will support affordable rental housing rather than homes for sale. However, some homeownership assistance could help more buyers enter the market, potentially increasing demand for qualifying resale homes.

The bottom line: Neither measure guarantees a higher or lower sale price for your home. Your local housing inventory, competing listings, and buyer demand will still play a much bigger role in determining what your property sells for.

Local election results that could affect California homeowners and renters

Beyond the statewide propositions, voters in several California cities approved measures that could change home-selling costs, rent protections, and future housing development.

Here are some of the most notable local results.

Changes to real estate transfer taxes

Several communities approved changes to real estate transfer taxes, which can affect closing costs and how much sellers take home.

• Los Angeles — Measure TE: Creates a one-time exemption from the city’s Proposition ULA transfer tax for qualifying residential properties damaged or destroyed in the 2025 Palisades Fire and sold within five years of the fire. This could provide significant relief for affected homeowners.
• Piedmont — Measure GG: Increases the real estate transfer tax from 1.3% to 1.75% of the sale price, effective July 1, 2027. On a $1 million sale, that’s an additional $4,500 in transfer taxes.
• Albany — Measure S: Replaces the city’s 1.5% real estate transfer tax with graduated rates ranging from 1% to 3%, depending on the property’s sale price.
• Portola Valley — Measure N: Increases the real estate transfer tax from $0.55 to $10 per $1,000 of the sale price.

Some California cities impose higher real estate transfer taxes on expensive property sales, often referred to as “mansion taxes.” Unlike annual property taxes, these are generally collected when a property changes ownership.

Kaminsky has seen how these taxes can influence homeowners’ decisions to sell.

“From what I see in nearby communities that have implemented a mansion tax, I run into more people who choose not to move or sell because of it. I feel it’s having a negative impact on the marketplace, not the positive impact intended, but that’s just one person’s opinion,” Kaminsky says.

New rent control and tenant protections

For renters, landlords, and owners of investment properties, several approved measures change the rules governing rent increases or evictions.

• San Pablo — Measure S: Limits annual rent increases for covered properties to the lesser of 3% or 60% of the Consumer Price Index increase, with a process for considering additional increases.
• Berkeley — Measure X: Amends the city’s rent stabilization ordinance, including a 10% annual rent increase ceiling and expanded rights for tenant associations in smaller properties.
• Santa Monica — Measures RR and VV: Expands eviction protections, including safeguards for tenants renting single-family homes and condominiums and restrictions on evictions involving relatively small unpaid rent balances.

These changes may influence rental-property operating costs, investment decisions, and transactions involving tenant-occupied homes. The rules and exemptions vary by city and property type.

Changes to housing development and affordability funding

Other communities approved measures that could increase housing opportunities or remove local development restrictions.

• San Francisco — Proposition C: Expands the city’s Housing Trust Fund, gradually increasing annual funding from roughly $52 million toward $125 million to support affordable housing and related assistance programs.
• San Bruno — Measure S: Repeals a 1977 ordinance requiring voter approval for certain taller buildings, higher-density development, and other projects.
• Davis — Measure W: Approves land-use changes allowing the proposed Willowgrove development, which could bring more than 1,200 new homes to the city, along with parks and neighborhood retail.
• Albany — Measure O: Allows the City Council to change certain zoning requirements in single-family residential areas without a separate neighborhood-wide vote, subject to required public procedures.

When will California’s new housing measures take effect?

Although voters approved both statewide housing propositions, their benefits won’t be available immediately.

Under Proposition 37, the California Housing Finance Agency must establish the new homebuyer loan program within one year of the measure taking effect. Based on the state’s election certification schedule, that puts the implementation deadline around mid-December 2027.

However, the agency still needs to establish program requirements, arrange financing, and coordinate with participating lenders. An application opening date has not been announced.

Proposition 1’s housing bond funding will also be distributed over time, as state agencies and housing developers move forward with eligible programs and projects.

Meanwhile, local measures have different effective dates. For example, Piedmont’s higher real estate transfer tax takes effect July 1, 2027.

With all these measures on the horizon, some Californians might ask: Should I delay buying because these programs are coming?

“There are strong reasons to own a home, and in my 39 years in real estate, I’ve never seen a perfect time to buy. The people who have benefited most from homeownership are the ones who stayed in their homes for the long term. That’s why I don’t think short-term changes in the market should derail anyone’s long-term plans,” Kaminsky says.

For updates, buyers can monitor the California Housing Finance Agency and the state’s official election results.

What should California buyers, sellers, and homeowners do next?

California’s election results offer new opportunities for some homebuyers and potential long-term benefits for housing affordability. But the right next step depends on your circumstances.

• Renters and prospective buyers: Explore existing down payment assistance programs while watching for Proposition 37 eligibility and application updates. Compare the total costs of new construction and resale homes before choosing a financing option.
• Home sellers: Ask a knowledgeable local agent how new construction incentives, buyer demand, and competing listings could affect your home’s sale price.
• Homeowners and landlords: Check whether approved local measures will change real estate transfer taxes, rental regulations, or development options in your community.
• Real estate agents and mortgage lenders: Follow program rollout announcements and local regulatory changes so you can help clients understand their options.

“Figure out what you can really afford, and borrow only the amount you’re comfortable with. A bank may approve you for more than you should take on, so set your own budget and shop for homes in that price range,” Kaminsky says.

Ultimately, the biggest impact of California’s 2026 housing election may take years to unfold. For now, understanding what passed — and what hasn’t changed yet — can help Californians make more informed housing decisions.

HomeLight is a data-driven real estate technology company that connects homebuyers and sellers with top-rated local real estate agents, lenders, and cash-buying options.

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