Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and New Jersey. Updated for 2026.
California wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. However, New Jersey 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.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in New Jersey saves you approximately $1,194/month ($14,328/year) compared to California, based on median home prices with identical loan terms.
New Jersey offers meaningfully lower home prices than California, with median prices running 36% less ($280K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of California may find New Jersey far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: California charges 0.73% while New Jersey charges 2.47%, a gap of 1.74 percentage points. On the respective median homes, this means New Jersey homeowners pay roughly $12,474 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.
Insurance costs favor New Jersey at $1,500/year versus $2,200/year in California, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while New Jersey's NJHMFA DPA Program offers Up to $15,000 forgivable. 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: New Jersey homes cost $280K less than California on average. That translates to roughly $1,194 less per month in total housing costs if you choose New Jersey. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.