homesbyrise December 7, 2020
Today I’m going to talk about a couple of the Local California Bay Area propositions from the recent election, their status, and how they may affect Bay Area real estate, homeowners, and local realtors. Whether they’ve passed or have not passed, it’s essential to know about these propositions in the Bay Area.
So, we’re going to talk about the three props that have to do with a local San Francisco Bay Area Real Estate as a whole, so that’s going to be prop 15, prop 19, and prop 21.
Let’s start with prop 15. So it looks as though prop 15 has been rejected. Essentially what prop 15 would be sort of like a partial repeal of prop 13, which passed in the 70s that put a cap on how much property taxes can be increased by every year to [I think] a maximum of 2%, with the continued increase in home prices going up way more than 2% per year since that time. Essentially, people’s accessed property taxes are much much lower than their fair market value. Especially if they bought their home a long time ago.
For example, somebody who bought their house in the 70s for $100,000 is paying property taxes on a property that’s worth $250,000. Still, some are very low like that. While the property is likely worth over a million dollars in the San Francisco Bay Area, Los Angeles, etc.
That also applied to businesses, which also applied to commercial real estate. What prop 15 aimed to do was repeal that for commercial properties. Proponents of prop 15 are people who own big corporations or very wealthy landlords.
This prop changes some of the tax assessment rules on property transfers by homeowners 55 or older or those who have lost a home due to natural things like an earthquake or tornado. Homeowners like these could transfer their tax assessment to a more expensive home 3 times with an upward adjustment. It would also eliminate the exemption of a home transfer to a child or a grandchild; if the recipient doesn’t use the home as their primary residence, its tax value would be reassessed under Prop 19.
This is the new rent control measure. It looks like it has failed- what prop 21 would have done is a partial repeal or a full repeal of cost to Hawkins. Hawkins is a law that stipulates that properties built before a statewide law that put a cap on rent control that said that the property’s made after the year 1995 statewide. Still, I believe it’s different for each county or city that enacted the rent control. For example, in San Francisco – any house built after a single-family home or condo built after 1979 is exempt from rent control laws.
This law prop 21 would have essentially repealed that and said that any home older than 15 years – Condo, single-family anything can/ will have rent control imposed on it, or can have rent control set on it. This is a big deal for a lot of tenants and a lot of landowners. This law did not pass, so it does not change anything. Right now, cities still have their rent control laws just as they did. In San Francisco, its properties were built before 1979. Property in 1979 is not exempt from rent control. Properties built after 1979 are exempt from rent control for Single-Family homes and condos.
I hope this breakdown was helpful. If you have any questions, I hope that you reach out to me! I’m constantly posting relevant information on the San Francisco real estate market. Please follow me on Instagram, Facebook, and Youtube!
Watch the video below for a realtor’s take on the prop update!
Stay up to date on the latest real estate trends.
San Francisco
July 2, 2025
From fireworks by the Bay to garlic-fueled festivities, July in the Bay Area is bursting with iconic summer events, local music, and community celebrations. Whether yo… Read more
Contra Costa Market Update
June 20, 2025
As we move through the spring season, Contra Costa’s real estate market continues to show signs of competitiveness—despite a modest uptick in inventory levels.
Alameda Market Update
June 18, 2025
Alameda's housing market continues to reflect high demand and low inventory this May, making it a strong seller’s market.
Santa Clara County Market Update
June 12, 2025
As we move through the heart of spring, Santa Clara's real estate market continues to show signs of strength and resilience. Whether you’re considering listing your ho… Read more
San Mateo Market Update
June 12, 2025
As we head into the busy spring market, San Mateo’s housing landscape remains competitive. With inventory staying tight and homes selling quickly, both buyers and sell… Read more
San Francisco
June 10, 2025
May is shaping up to be a dynamic month in the San Francisco housing market. With steady inventory, quick sales, and strong buyer interest, both buyers and sellers nee… Read more
Bay Area
June 6, 2025
Summer is officially here in the San Francisco Bay Area, and so is an incredible lineup of events to enjoy! From Pride celebrations to historic races and family-friend… Read more
Alameda Market Update
May 29, 2025
Alameda’s housing market continues to hold strong this spring, with low inventory and high buyer demand defining the landscape. If you’re planning to buy or sell in th… Read more
Contra Costa Market Update
May 28, 2025
As we step further into spring, Contra Costa County is experiencing a dynamic real estate landscape marked by strong buyer interest and limited inventory. Let’s break … Read more
You’ve got questions and we can’t wait to answer them.