Buying a Home in California in 2026
California's median home price is about $$765,000 in 2026, nearly double the national median. Coastal markets like Los Angeles and San Diego run far above that, while Sacramento and the Inland Empire offer the closest thing to a relative deal in the state.
High prices mean most California buyers stretch further than the textbook 20% down, and many use FHA or CalHFA-backed loans to get in with less. Competition has cooled from the frenzy years, but well-priced homes in good school districts still draw multiple offers. Budget for insurance carefully: wildfire-zone premiums have become a real line item in many counties.
California Property Taxes and Your Monthly Payment
California's effective property tax rate averages about 0.70%, which sounds low until you multiply it by California prices. On a $$765,000 home that is roughly $$5,355 a year, or $$446 a month.
Proposition 13 caps annual assessment increases at 2%, so longtime owners pay far less than new buyers of identical homes. New buyers should budget on the full purchase price, minus the small $7,000 homeowner's exemption, and Proposition 19 lets buyers 55 and older or disabled carry their tax base to a new home.
First-Time Homebuyer Programs in California
The California Housing Finance Agency (CalHFA) offers FHA and conventional first mortgages paired with the MyHome Assistance Program, a deferred-payment junior loan that covers down payment and closing costs. Income limits apply and vary by county, but the programs are designed specifically for first-time buyers shut out by California prices.
California Monthly Payment Example
Take the median-priced California home at $$765,000. Put 20% down ($$153,000) and finance $$612,000 over 30 years at 6.35%. Here is the monthly picture.
| Item | Monthly Amount |
| Home price | $765,000 |
| Down payment (20%) | $153,000 |
| Loan amount | $612,000 |
| Principal and interest (6.35%, 30-yr fixed) | $3,808 |
| Property tax | $446 |
| Homeowners insurance | $125 |
| Total monthly payment | $4,379 |
Even with a low tax rate, the tax line hits $$446 a month because the price is so high. The total payment lands near $$4,379 a month, which is why California buyers scrutinize every eighth of a point on the rate.
Closing Costs and Transfer Taxes in California
Plan on 2% to 5% of the price in closing costs, plus the county transfer tax of $1.10 per $1,000. In cities like Los Angeles, city transfer taxes stack on top. Title insurance, escrow fees, and prepaid taxes round out the bill, and on a $$765,000 purchase the total can easily reach five figures.
Frequently Asked Questions
What is the median home price in California in 2026?
About $$765,000 statewide. Los Angeles and San Diego sit well above it; Sacramento and inland markets sit below.
How much is property tax on a $$765,000 California home?
Roughly $$5,355 a year at the 0.70% effective rate, or $$446 a month. Proposition 13 protects longtime owners, but new buyers are assessed at purchase price.
Does California have a first-time homebuyer program?
Yes. CalHFA offers first mortgages paired with the MyHome Assistance Program, a deferred junior loan for down payment and closing costs, subject to county income limits.
What transfer taxes apply in California?
Counties charge $1.10 per $1,000 of price, and some cities add their own transfer tax on top of the county amount.
Does Proposition 13 help new buyers?
Not directly. It caps assessment growth at 2% a year, which benefits longtime owners. New buyers are assessed at what they paid, though Proposition 19 offers base-year transfers for buyers 55+ and disabled buyers.
Related Calculators
California prices demand careful budgeting. Compare the payment with your earnings using the California Paycheck Calculator. For the big picture, start with the Mortgage Calculator, or compare nearby markets with the Arizona Mortgage Calculator, Hawaii Mortgage Calculator, and Colorado Mortgage Calculator.
Sources: Zillow ZHVI state medians (Feb 2026), Tax Foundation property tax analysis, California Housing Finance Agency (CalHFA). Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not financial advice.