California Voters Pass Proposition 37 Homeownership Act

California voters passed Proposition 37, the California Middle-Class Homeownership and Family Home Construction Act of 2026, during the Tuesday election. The measure provides eligible homebuyers with a second mortgage covering up to 17% of the purchase price for newly constructed homes priced below $1.5 million.

To qualify for the program, buyers must be California residents who occupy the home as their primary residence and earn less than twice the median income of their area. Participants must provide a minimum down payment of 3% and are exempt from obtaining mortgage insurance.

Former California Assembly Speaker Robert M. Hertzberg championed the initiative, which received backing from the California Association of Realtors. Hertzberg stated that the measure offers middle-class Californians a real chance to put down roots, build equity, and stay in the communities they serve.

Analysis indicates the initiative aims to stimulate housing demand, with estimates suggesting that every $1 billion in bond capital could support approximately 7,600 new home purchases and leverage $4.9 billion in additional construction spending.