California voters defeat ballot measure to speed environmental review for housing

California voters rejected Proposition 45 over the weekend, according to HousingWire. Unofficial returns showed approximately 56 percent of voters opposed the measure while 44 percent voted in favor. HousingWire reported that the Associated Press called the race after the vote margin became too large for remaining uncounted ballots to overcome. [1]

as FTMQ Real Estate reported earlier, Proposition 45 proposed setting a 270-day limit for court challenges under the California Environmental Quality Act. The proposal sought to consolidate legislative modifications to the state environmental law to accelerate project approvals. HousingWire reported that opponents argued the measure could fast-track data centers and major infrastructure projects rather than focusing solely on residential developments. [1][4]

The ballot measure failed decisively across populous coastal counties where housing affordability remains a critical market issue, HousingWire reported. Opposing votes dominated in Santa Cruz, Marin, and Sonoma counties, blocking the state effort to reduce permitting hurdles. [1]

California had a gross domestic product of 4.1 trillion dollars in 2025. The defeat of Proposition 45 follows previous state environmental review reforms signed into law by Governor Gavin Newsom last year, as FTMQ Real Estate reported earlier. [3][4]