Homeowner’s Guide to Midterm Election Ballot Measures

Voters in 10 states will have the chance to approve ballot measures this year, including a half-dozen changes to property taxes and one that could change statewide zoning.

The 2026 midterm elections include six different proposed changes to property tax systems, all in states across the South and West. There are also three voter-created referenda in California, as well as one each in Massachusetts, Hawaii, and Rhode Island. Voters will consider statewide law changes for starter homes, homebuyer assistance, bond authority, and more.

Housing affordability has been top of mind this year in both Washington, DC, and statehouses nationwide. Dozens of states have pitched new housing laws aimed at making it easier to buy a home. Congress passed the 21st Century Road to Housing Act to expedite building. But it will take years for its impacts to show.

For new buyers, it’s been a difficult housing market, and many say housing is a top concern. Young people are increasingly pessimistic they’ll ever afford a home.

California, Massachusetts, Hawaii, and Rhode Island all earned an F grade on the Realtor.com® State-by-State Housing Report Card, part of the Let America Build campaign, which tracks how effectively each state balances affordability and new construction.

California Proposition 1

Proposition 1 would authorize California to issue $11.25 billion in bonds to support housing affordability programs. That includes multifamily rental housing, permanent supportive housing, and affordable housing. The funding backs both down payment assistance programs and mortgage programs for veterans.

The last time California voted on such a measure was March 2024, when voters approved $6.38 billion for bonds. That supported homelessness and veterans housing programs.

Gov. Gavin Newsom backed the measure, and so did the Democratic Party of California and a spate of its leaders.

“This bond is about building communities, expanding access and affordability in California, where every family has a fair shot at a place to call home,” Newsom said of the measure.

The ACLU supports the measure, as does the California Apartment Association and the California Housing Consortium. The California Budget & Policy Center notes some scattered opposition from Republican state legislators.

California Proposition 37

Proposition 37 creates a $25 billion loan program for middle-income buyers to purchase new homes. The state would issue bonds and use the proceeds to offer fixed-rate mortgages on a new home that’s less than $1.5 million.

Borrowers must be California residents who pay at least 3% down and meet some income requirements. This, supporters say, would help lower the amount they’d need to save for a down payment on a new home. They expect the measure to spur the construction of new homes, and be paid for when investors and home borrowers repay the loans.

The California Association of Realtors and the California Chamber of Commerce both support the measure.

California Proposition 45

Proposition 45 is California’s most controversial measure. It would set timelines on environmental reviews for some projects under the California Environmental Quality Act, or CEQA. These new requirements would expedite environmental review and court challenges to projects.

But the measure divides affordable housing advocates, who support it, and environmental groups, who oppose it. Proponents include the Associated General Contractors of California, the California Building Industry Association, the California Council for Affordable Housing, and the California Chamber of Commerce.

The Sacramento Bee endorsed the proposition. It said reforming CEQA will restore a law that “has too often been weaponized by not-in-my-backyard interests to stop the construction of needed housing.”

On the other side, the Southern California District Council of Laborers, the State Building and Construction Trades Council of California, and the ACLU are opposed.

Florida property tax amendment

Florida‘s Amendment 3, pushed by outgoing Gov. Ron DeSantis, would phase out property taxes for many owner-occupied homes, increasing the homestead property tax exemption from $50,000 to $150,000 next year, then $250,000 in 2028. It’s probably the most ambitious property tax change.

GOP Rep. Byron Donalds, who is running to replace the term-limited DeSantis, supports the measure. The Democratic candidate for Florida governor, David Jolly, does not.

The state’s economists believe the measure could deprive local governments of $124 million in revenue, hitting some small counties especially hard. It’s now the subject of multiple lawsuits.

Louisiana ballot questions

Louisiana has four different items on the ballot that could affect homeowners.

Amendment 9 would increase the property tax freeze of homes for homeowners with incomes less than $100,000. It would be raised to $150,000 if the amendment passes.

Amendment 1 would let the surviving spouse of a disabled veteran transfer the homestead property tax exemption to a new homestead.

Amendment 6 would allow a property tax exemption for homeowners over age 65 who already qualify for an income assessment-based freeze. That would be up to $30,000 of assessed property value.

Amendment 10 would allow an optional property tax exemption for blighted and derelict property that has been rehabilitated.

Massachusetts Question 7

While many states have put forth legislation aimed at starter homes this year, Massachusetts voters will decide directly.

Question 7, if passed, would change the state’s laws so that a single-family home could be built on a lot that’s residentially zoned and at least 5,000 square feet. The lot would need at least 50 feet of land bordering the street or public way, and it would also need access to public sewer and water.

Andrew Mikula, the ballot initiative’s organizer and chief housing economist at the Pioneer Institute, told Realtor.com the new law could mean thousands of new homes a year on small lots. That might turn back the state’s lagging affordability and help right its housing shortage.

“We’re not envisioning farmland turning into hundreds of homes at a time,” Mikula said. “We want this to be a kind of well-planned and New England-like development pattern.”

How many homes it will create, though, is up for debate. And the issue has drawn concerns from the Massachusetts Municipal Association and the state’s Republican Party. But it has the support of Gov. Maura Healey.

North Carolina property tax levy limit amendment

The North Carolina property tax levy limit would require the state Legislature to pass laws limiting property tax increases in the state. It doesn’t establish what that cap would be, leaving it up to the Legislature to decide.

It’s largely pitted low-tax groups and politicians against civil service and housing groups. Such a tax cap would hamstring many local governments while returning only a few dollars to homeowners, the North Carolina Housing Coalition said.

On the other hand, Republican House Speaker Destin Hall, a supporter, said it would stop “runaway property tax hikes.”

Oklahoma

State Question 847 would lower limits on annual property tax assessment increases. For homestead and agricultural properties, the maximum annual assessment increase would drop from 3% to 1.75%. For all other properties, the cap would drop from 5% to 4%.

A smattering of state legislators and the Oklahoma Farm Bureau support the measure. The Oklahoma Policy Center does not.

Voters defeated another measure, State Question 844, which would have changed how property tax revenue was allocated.

Rhode Island Question 2

Rhode Island’s Question 2 would issue $120 million in general-obligation bonds, which could then be used in various costs to increase the supply of affordable housing. The funding would go to pre-development work, new construction, property acquisition, and infrastructure improvements.

Of that money, $25 million must go to increasing construction of for-sale homes and $10 million for public housing. The state expects construction on these projects to begin in 2028 and the new housing to come online from 2029 to 2032. That’s according to the state’s information on the ballot measure, which notes a total cost of $192.5 million, thanks to interest.

Gov. Dan McKee, who has made housing reform a major focus of his administration, urged voters to approve the bill. Americans for Tax Reform is opposed.

Tennessee Amendment 2

Amendment 2 would ban any future statewide property tax in Tennessee. The state doesn’t currently have one. Gov. Bill Lee and a wide number of people in the state Legislature support it, as do the Tennessee Realtors.

Wyoming Initiative 1

Initiative 1 would create a 50% property tax exemption on a homeowner’s primary residence with no cap on property value. By contrast, Wyoming’s current exemption covers 25% of the first $1 million in home value.

Endorsed by the Wyoming Republican Party, the measure is officially projected to reduce revenue by $92 million in 2028 and $96 million in 2029. However, higher revenue loss estimates exist, and the Mountain States Policy Center warns that attempting to offset the shortfall with sales tax increases could create new economic challenges.