Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Minnesota. Updated for 2026.
California and Minnesota are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Minnesota saves you approximately $2,902/month ($34,824/year) compared to California, based on median home prices with identical loan terms.
There's a dramatic price gap between these two states. Homes in Minnesota cost 57% less than in California — that's a difference of $450K on the median home. For buyers relocating from California to Minnesota, 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 Minnesota, potentially eliminating PMI and reducing your monthly payment dramatically.
California has a moderate property tax advantage at 0.73% versus Minnesota's 1.12%. While the rate gap of 0.39% may seem small, it translates to an annual difference of approximately $1,978 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $16K in savings.
Closing costs are a one-time but significant expense. California averages $9K in closing costs (1.2% of purchase price) while Minnesota averages $5K (1.4%). 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 Minnesota's Minnesota Housing Start Up offers Up to $18,000 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.
The bottom line: Minnesota homes cost $450K less than California on average. That translates to roughly $2,902 less per month in total housing costs if you choose Minnesota. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.