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California vs Washington:
Mortgage & Housing Costs

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

MetricCaliforniaWashington
Median Home Price$785K$580K
Property Tax Rate0.73%0.98%
Avg Closing Costs$9K$8K
Closing Cost %1.2%1.4%
Transfer Tax0.11%1.78%
Homeowners Insurance$2,200/yr$1,600/yr
First-Time Buyer Program
CalHFA Dream For All
Up to 20% shared appreciation loan
WSHFC Home Advantage
Up to $10,000 DPA
Verdict

California and Washington 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.

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
Washington
Home Price$580,000
Down Payment (10%)$58,000
Loan Amount$522,000
Monthly P&I$3,299
Monthly Property Tax$474
Monthly Insurance$133
Monthly PMI$218
Total PITI$4,124/mo
Annual property tax: $5,684

The monthly payment difference is $1,297/month — thats $15,564/year or $467K over the life of a 30-year loan. Buying in Washington 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
Washington
$177K/yr
minimum household income

To afford the median home in California, you need a household income of approximately $232K/year. In Washington, you need $177K/year — less by $56K/year. That $56K income gap means Washington is accessible to a significantly wider range of households.

Which State Is Right for You?

Washington offers meaningfully lower home prices than California, with median prices running 26% less ($205K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of California may find Washington far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (California: 0.73%, Washington: 0.98%), 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.

Insurance costs favor Washington at $1,600/year versus $2,200/year in California, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K 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 Washington's WSHFC Home Advantage offers Up to $10,000 DPA. 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: California and Washington are broadly similar in housing costs, with only $1,297/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Washington or California?
Washington is cheaper overall. The median home costs $580K compared to $785K in California, and the total monthly PITI payment is $4,124 versus $5,421. That works out to $1,297 less per month or $15,564 less per year in Washington.
How much more are property taxes in Washington vs California?
Washington has a property tax rate of 0.98% compared to 0.73% in California. On the median home, that means Washington homeowners pay approximately $5,684/year in property taxes versus $5,731/year in California — a difference of $47/year.
Which state has better first-time buyer programs, California or Washington?
California offers the CalHFA Dream For All (Up to 20% shared appreciation loan), while Washington has the WSHFC Home Advantage (Up to $10,000 DPA). 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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