Buying a Home: California vs Texas (2026 Comparison)

# Buying a Home: California vs Texas (2026 Comparison) Considering a move? This detailed comparison of California and Texas real estate markets will help you decide which state offers the best value for your home purchase in 2026. ## Quick Comparison | Factor | California | Texas | |--------|------------|------------| | Median Home Price | $833,000 | $350,000 | | Property Tax Rate | 0.71% | 1.58% | | Annual Property Tax | $4,926 | $4,111 | | Closing Costs | $5,962 | $3,713 | | FHA Limit (Floor) | $524,225 | $524,225 | | Days on Market | 28 | 52 | | 1-Year Price Change | +2.50% | -0.50% | | DPA Programs | 3 | 3 | ## Home Prices **Texas is more affordable** with a median home price $483,000 lower than California. At current rates (6.33%), here's what your monthly payment would look like at median prices: | State | Home Price | Est. Monthly P&I | |-------|------------|------------------| | California | $833,000 | $4,138 | | Texas | $350,000 | $1,739 | *Assumes 20% down payment, 30-year fixed mortgage* ## Property Taxes **California has lower property taxes** at 0.71% vs Texas's 1.58%. - California ranks #35 nationally - Texas ranks #7 nationally ## Closing Costs | State | Average Closing Costs | % of Price | |-------|----------------------|------------| | California | $5,962 | 0.74% | | Texas | $3,713 | 0.93% | ## Down Payment Assistance ### California (CalHFA) - **MyHome Assistance Program:** Up to 3.5% of purchase price or $10,000 - **California Dream For All:** Up to 20% of purchase price ### Texas (TDHCA) - **My First Texas Home:** Up to 5% of loan amount - **My Choice Texas Home:** Up to 5% of loan amount ## Market Conditions ### California - Inventory: low - Market Type: Seller's Market - Price Trend: Rising ### Texas - Inventory: moderate - Market Type: Buyer's Market - Price Trend: Declining ## Total Cost of Homeownership Over 5 years at median home prices: | Cost | California | Texas | |------|------------|------------| | Mortgage (P&I) | $248,273 | $104,316 | | Property Taxes | $24,630 | $20,555 | | **5-Year Total** | **$272,903** | **$124,871** | ## Conclusion **Texas offers better overall value** when considering home prices, taxes, and closing costs. Use our state-specific calculators to get detailed estimates for your situation: - [California Mortgage Calculator](/mortgage-calculator/california) - [Texas Mortgage Calculator](/mortgage-calculator/texas) --- *Data sources: Tax Foundation, Zillow, HUD. Last updated: January 2026.*