ARTICLE 4 of 4:

California Proposition 45 — Could Faster Environmental Reviews Lead to More Housing in San Diego County?

Could California Proposition 45 Change How Housing Gets Built?

Building new housing in California involves more than finding land and hiring a contractor. Depending on the project, developers may need zoning approvals, environmental reviews, permits, infrastructure improvements, and other government authorizations before construction can begin.

These processes are intended to evaluate proposed developments and their potential impacts. However, the time and expense associated with approvals can also affect whether a project is financially feasible.

California Proposition 45, on the November 3, 2026, ballot, proposes changes to the California Environmental Quality Act (CEQA) review process for certain projects, including most housing projects that qualify under the measure.

Supporters argue that faster approvals could help California build essential housing and infrastructure. Critics have raised concerns about changes to environmental review and opportunities for public participation.

For San Diego County homeowners, landowners, buyers, and developers, the important question is how the proposal could affect the development process—and whether it might ultimately influence housing availability or property values.

Sources: California Secretary of State — Proposition 45 and Legislative Analyst’s Office — Proposition 45 Analysis.

What Is Proposition 45?

Proposition 45 is an initiative statute that would establish new environmental review procedures for specified categories of projects.

The eligible categories include:

Housing.
Water systems.
Clean energy projects.
Health facilities and medical offices.
Fire, police, and sheriff’s stations.
Wildfire risk-reduction projects.
Broadband internet infrastructure.
Educational facilities.
Transportation projects.

Some projects are excluded from the measure’s provisions, including certain categories specifically identified in the official analysis.

The proposal would tighten time limits for environmental reviews, permits, and legal challenges involving eligible projects. It would also change aspects of the environmental review process and how courts consider certain lawsuits.

Importantly, eligible applicants could choose to use the new procedures or continue under existing procedures.

Source: Official Proposition 45 Analysis.

What Is CEQA, and Why Does It Matter to Real Estate?

CEQA is California’s environmental review law. It requires public agencies to evaluate the potential environmental impacts of certain proposed projects before approving them.

Depending on the project, the review may examine issues such as traffic, air quality, noise, water resources, wildlife, and other environmental effects.

The process varies by project. Some developments are exempt from environmental review or qualify for streamlined procedures, while others require more extensive analysis.

For projects requiring an environmental impact report, agencies must evaluate potential environmental effects and consider alternatives that could reduce those effects.

CEQA also provides a process through which people can challenge an agency’s environmental review in court.

These requirements can influence development timelines, project costs, and the decisions developers make about where and what to build.

Source: Legislative Analyst’s Office — Proposition 45.

What Would Proposition 45 Change?

The measure proposes several significant changes for eligible projects.

1. Tighter review deadlines

Proposition 45 would establish more binding deadlines for government agencies conducting environmental reviews and issuing certain approvals and permits.

For example, it includes a 365-business-day deadline for completing an environmental impact report, with procedures available to an applicant if an agency misses the deadline.

The measure would also establish time limits for resolving certain legal challenges.

These provisions could make some project timelines more predictable.

2. Changes to application requirements

Agencies would be required to specify the information that must be included in an application before it is submitted.

This could help applicants understand what they need to provide at the beginning of the process.

However, it would not eliminate every reason a project might experience delays.

3. Changes to environmental analysis

The proposal would change how agencies evaluate certain environmental impacts and alternatives for eligible projects.

For example, it would limit the current obligation to consider a range of feasible project alternatives in the manner specified by the measure.

These changes are central to the debate over Proposition 45 because they could affect both the timing and substance of environmental review.

4. Changes to court challenges

Proposition 45 would establish deadlines for filing and resolving certain lawsuits and limit aspects of the evidence courts may consider and the remedies they may order.

The practical effect would depend on the project, the applicable provisions, and how courts and agencies implement the law.

Source: Official Proposition 45 Analysis.

Could Proposition 45 Help Increase Housing Construction?

Potentially.

If eligible housing projects can move through environmental review and certain permitting procedures more efficiently, developers may face fewer delays associated with those processes.

Time matters in real estate development because projects often involve substantial costs before a single home is sold or rented.

Developers may need to pay for land, professional services, financing, insurance, and other expenses while waiting for approvals.

Reducing some delays could improve the financial feasibility of certain projects.

For San Diego County, this could be relevant to developers considering residential construction in communities where housing demand, infrastructure requirements, and land costs affect project feasibility.

However, faster environmental review does not guarantee that more homes will be built.

Projects still depend on financing, land availability, zoning, construction costs, labor, infrastructure, market demand, and other approvals.

A project might complete environmental review more quickly but still be delayed or abandoned for other reasons.

What Could This Mean for San Diego County?

San Diego County includes coastal communities, established suburban neighborhoods, rural properties, and areas facing wildfire and infrastructure challenges.

The implications of Proposition 45 could differ considerably across these settings.

Established communities

In established communities, eligible housing developments could potentially benefit from more predictable review timelines.

The effect would depend on whether a proposed project qualifies and whether environmental review is a significant source of delay.

Landowners considering development

Owners of land with potential residential development opportunities may want to understand whether a proposed project could qualify for the new procedures.

However, eligibility under Proposition 45 would not automatically make land developable. Zoning, access, utilities, environmental constraints, and other requirements would remain important.

Areas facing wildfire risks

The measure also includes wildfire risk-reduction projects among the eligible categories.

Faster reviews could potentially help certain qualifying projects proceed more efficiently, although the measure would not eliminate other requirements applicable to wildfire mitigation or development in fire-prone areas.

Infrastructure-constrained locations

Some developments depend on water systems, transportation, or other infrastructure improvements.

Although the measure includes certain infrastructure projects, it would not guarantee that every infrastructure improvement needed for housing would be approved or completed.

Could Proposition 45 Lower the Cost of New Homes?

It is possible that some projects could experience lower costs if they avoid certain delays or legal expenses.

However, there is no reliable basis for predicting that Proposition 45 would reduce the purchase price of a typical San Diego County home by a particular amount.

Housing prices depend on many factors, including land costs, construction materials, labor, financing, regulatory requirements, and market demand.

Even if a developer saves money on environmental review, the savings would not necessarily be passed directly to buyers.

The amount and distribution of any savings would depend on the project and market conditions.

Could It Affect Existing-Home Values?

Any effect on existing-home values would likely be indirect.

If the measure contributes to additional housing construction, the resulting supply could affect competition between new and existing homes in certain communities or price ranges.

Other effects might arise from changes in development patterns, neighborhood infrastructure, or the availability of new housing options.

For example, additional housing could give buyers more choices, while new development could also bring changes in traffic, public facilities, or neighborhood character.

These are possible outcomes, not guaranteed results.

The official analysis does not establish that Proposition 45 would increase or decrease existing-home values in San Diego County.

What Are the Potential Concerns?

Proposition 45 is not simply an administrative change. It would also alter parts of the environmental review and legal challenge process.

Critics may be concerned about whether shorter timelines or changes to environmental analysis could limit opportunities to identify and address project impacts.

The measure’s changes to public participation and judicial review are therefore important considerations for residents evaluating a proposed development.

The policy question is whether the proposed procedures would produce a better balance between timely approvals, housing production, environmental protection, and public participation.

Different communities and stakeholders may reach different conclusions.

What Would Proposition 45 Cost?

The Legislative Analyst’s Office estimates that initial state and local government implementation costs would likely be in the high tens of millions of dollars annually and could exceed $100 million annually.

Fees paid by project applicants and people filing lawsuits would cover part of these costs.

Longer-term fiscal effects are uncertain. They could be positive or negative depending partly on how the new procedures affect the number of projects completed and their environmental impacts.

Source: Legislative Analyst’s Office — Proposition 45.

What Should Homeowners and Landowners Watch For?

If Proposition 45 passes, the most useful next steps would be to monitor:

How agencies implement the new review procedures.
Which housing projects qualify.
The deadlines and application requirements established for eligible projects.
How the measure affects litigation involving qualifying developments.
Whether developers use the new procedures.
Whether completed projects result in additional housing supply.

Landowners considering development should obtain project-specific advice from qualified planning, legal, and development professionals rather than assuming that the measure would make a property immediately buildable.

Final Thoughts

Proposition 45 would change environmental review procedures for specified projects, including qualifying housing developments.

The measure could make certain approval processes more predictable and potentially reduce some delays. But its effects would depend on implementation, project eligibility, local conditions, and other factors that influence development.

For San Diego County, the most important question is not simply whether the review process becomes faster. It is whether the changes ultimately help produce housing that is financially feasible, appropriately located, and responsive to community needs.

Proposition 45 could affect the development process, but it would not guarantee more homes, lower prices, or higher property values.

Understanding those distinctions is important for homeowners, buyers, sellers, and landowners evaluating California’s evolving real estate environment.

Have questions about how housing development or local market conditions could affect your property?

Steve Cardinalli can help you evaluate local real estate trends and the factors that matter when buying or selling residential property in San Diego County.

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Election information current as of October 10, 2026. Proposition 45 is a proposed measure. This article is for general informational purposes and is not legal advice. Consult the official voter guide and qualified professionals regarding specific development proposals.

Steve Cardinalli
Real Estate Professional, 01323509
(760) 814-0248
Steve@Cardinalli.com
www.Cardinalli.com
Century 21 Affiliated Fine Homes & Estates
Village Faire in Carlsbad Village
300 Carlsbad Village Dr, 223
Carlsbad, CA 92008

California Proposition 45