Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Illinois. Updated for 2026.
Illinois wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $270K and lower overall costs, Illinois offers meaningful savings compared to California. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $3,160/month — that’s $37,920/year or $1.1M over the life of a 30-year loan. Buying in Illinois is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in California, you need a household income of approximately $232K/year. In Illinois, you need $97K/year — less by $135K/year. That $135K income gap means Illinois is accessible to a significantly wider range of households.
There's a dramatic price gap between these two states. Homes in Illinois cost 66% less than in California — that's a difference of $515K on the median home. For buyers relocating from California to Illinois, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a California home could fund a much larger down payment in Illinois, potentially eliminating PMI and reducing your monthly payment dramatically.
Property taxes are dramatically different: California charges 0.73% while Illinois charges 2.07%, a gap of 1.34 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $5,731 in California. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Closing costs are a one-time but significant expense. California averages $9K in closing costs (1.2% of purchase price) while Illinois averages $5K (2%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while Illinois's IHDA 1stHomeIllinois offers $7,500 forgivable 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.
The bottom line: Illinois homes cost $515K less than California on average. That translates to roughly $3,160 less per month in total housing costs if you choose Illinois. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.