Midterm Election: Real Estate in California

How do midterm election results affect the real estate market? See below for a list of the noteworthy measures that have the power to influence the California real estate market.

Prop 5: NO

Vote opposed to amending Proposition (1978) to change how tax assessments are transferred between properties for homebuyers who are age 55 or older or severely disabled.

Prop 6: NO

Vote opposed the initiative to repeal fuel tax increases, which means the state’s increase on gas and vehicle fees will remain in effect. Estimates show that Prop 6 would have reduced California’s tax revenue by roughly $2.9 billion in 2018 an 2019 and by nearly $5billion in 2020 to 2021.

Prop 10: NO

Vote that protects property values and limits local governments from taking rights away from property owners. A NO vote encourages property development and ultimately drives down the cost of rent. The NO vote keeps the Costa-Hawkins Rental Housing Act and will continue to prohibit local governments from enacting rent control on certain buildings.

City/County Specific

Prop C (San Francisco): YES

Voted in favor of authorizing the city and county of San Francisco to fund housing and combat homelessness by taxing the city’s biggest businesses. This will generate up to $300 million a year in new funds for shelters and mental health services.

Measure FF: YES

Voted in favor of authorizing East Bay Regional Park District to renew a parcel tax for 20 years. This kind of property tax is based on the units of property rather than assessed value. Property owners will be taxed $12/year for a single family parcel and $8.28/per year for a multi-family residential unit to fund both park maintenance and wildfire protection.

Measure K (Alameda): YES

Voted in favor of renewing the rent control law passed in 2016 – Ordinance 3148, the Rent Review, rent Stabilization, and Limitations on Evictions law – also, requiring voter approval for any changes to the law.

Measure P (Berkeley): YES

Voted in favor or increasing the real estate transfer tax in order to fund general city purposes and the formation of a homeless services panel.

Measure Q (Berkeley): YES

Voted in favor of amending the city’s rent control ordinance. The measure will exempt newly built housing from rent control for the first 20 years after building. Also exempt from rent control, units containing permitted accessory dwelling units where the owner resides on the property.

Measure T (Hayward): YES

Voted in favor of increasing the real property transfer tax to fund general municipal services.

Measure V (Oakland): YES

Voted to allow marijuana business to deduct the cost of raw materials from their gross receipts and to pay taxes on a quarterly basis. This measure also allows the city council to amend the law in any manner that does not increase the tax rate.

Measure W (Oakland): YES

Voted in favor of enacting a tax on property that is used for fewer than 50 days a year at annual rates of $6,000 per parcel and $3,000 for condominium units to fund resources to address homelessness and illegal dumping.

Measure X (Oakland): YES

The vote is in favor of changing the city’s current real property tax from a flat 1.5% rate to the following tiered rates based on the sale price:

  • 1% for up to $300,000
  • 1.5% from $300,000 – $2,000,000
  • 1.75% from $2,000,000 – $5,000,000
  • 2% for over $5,000,000

Measure Y (Oakland): YES

The vote is in favor of amending the evictions limitations law to remove exemptions for owner-occupied duplexes and triplexes. Owners can still evict tenants under all other Just Cause Ordinance.

Need any further information on how the midterm election results may have affected your home value? Contact me!