How Much House Can I Afford in California?

California is the most expensive housing market in the continental United States, with a statewide median home price of around $793,000. However, the state's effective property tax rate of just 0.74% — kept low by Proposition 13 — means ongoing tax costs are lower than many mid-priced states. On a $793,000 home, annual property taxes come to roughly $5,900, or about $492/month.

The California housing market is not one market — it's dozens. The San Francisco Bay Area median exceeds $1.2M; Los Angeles County sits near $900,000; San Diego approaches $950,000. Inland markets like Riverside/San Bernardino, Fresno, and Sacramento offer medians of $400,000–$550,000, making them the most viable entry points for moderate-income buyers.

One California-specific consideration is earthquake insurance. Standard homeowners policies do not cover earthquake damage. The California Earthquake Authority (CEA) offers policies at varying deductibles (typically 5%–25% of coverage). Buyers in high-risk zones along active fault lines should obtain quotes before closing.

California's high-cost county loan limits allow conforming mortgages up to $1,149,825 in areas like San Francisco, Los Angeles, and Orange County — meaning buyers can access conventional loan rates even at higher price points without entering jumbo loan territory.