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California vs Florida:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Florida. Updated for 2026.

MetricCaliforniaFlorida
Median Home Price$785K$395K
Property Tax Rate0.73%0.86%
Avg Closing Costs$9K$7K
Closing Cost %1.2%1.8%
Transfer Tax0.11%0.7%
Homeowners Insurance$2,200/yr$4,200/yr
First-Time Buyer Program
CalHFA Dream For All
Up to 20% shared appreciation loan
Florida Hometown Heroes
Up to 5% as 0% deferred loan
Verdict

California wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Florida has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

California
Home Price$785,000
Down Payment (10%)$78,500
Loan Amount$706,500
Monthly P&I$4,466
Monthly Property Tax$478
Monthly Insurance$183
Monthly PMI$294
Total PITI$5,421/mo
Annual property tax: $5,731
Florida
Home Price$395,000
Down Payment (10%)$39,500
Loan Amount$355,500
Monthly P&I$2,247
Monthly Property Tax$283
Monthly Insurance$350
Monthly PMI$148
Total PITI$3,028/mo
Annual property tax: $3,397

The monthly payment difference is $2,393/month — thats $28,716/year or $861K over the life of a 30-year loan. Buying in Florida is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

California
$232K/yr
minimum household income
Florida
$130K/yr
minimum household income

To afford the median home in California, you need a household income of approximately $232K/year. In Florida, you need $130K/year — less by $103K/year. That $103K income gap means Florida is accessible to a significantly wider range of households.

Which State Is Right for You?

Florida offers meaningfully lower home prices than California, with median prices running 50% less ($390K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of California may find Florida far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (California: 0.73%, Florida: 0.86%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Homeowners insurance is significantly cheaper in California ($2,200/year) compared to Florida ($4,200/year). That's an extra $2,000 per year — or $167/month — eating into your budget in Florida. Florida's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.

Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while Florida's Florida Hometown Heroes offers Up to 5% as 0% deferred loan. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Florida homes cost $390K less than California on average. That translates to roughly $2,393 less per month in total housing costs if you choose Florida. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

California vs AlaskaCalifornia vs ArizonaCalifornia vs ColoradoFlorida vs AlabamaFlorida vs AlaskaFlorida vs Arizona

Frequently Asked Questions

Is it cheaper to buy a home in Florida or California?
Florida is cheaper overall. The median home costs $395K compared to $785K in California, and the total monthly PITI payment is $3,028 versus $5,421. That works out to $2,393 less per month or $28,716 less per year in Florida.
How much more are property taxes in Florida vs California?
Florida has a property tax rate of 0.86% compared to 0.73% in California. On the median home, that means Florida homeowners pay approximately $3,397/year in property taxes versus $5,731/year in California — a difference of $2,334/year.
Which state has better first-time buyer programs, California or Florida?
California offers the CalHFA Dream For All (Up to 20% shared appreciation loan), while Florida has the Florida Hometown Heroes (Up to 5% as 0% deferred loan). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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