Income needed to buy a house in California
A median-priced home in California costs $759,500. With 20% down you'd need about $196,807 a year, $96,658 more than the state's median household income of $100,149. California ranks #50 of 51 for the lowest income needed.
Income needed: $196,807 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $196,807 a year to buy a $759,500 home in California with $151,900 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $4,022 |
| Property tax | $447 |
| Homeowners insurance | $123 |
| Total | $4,592 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $37,975 | $5,647 | $242,011 |
| 10% | $75,950 | $5,380 | $230,560 |
| 20% | $151,900 | $4,592 | $196,807 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in California: what's different
- Transfer tax
- 0.11% county tax
- On the median home
- $840
- Homestead break
- $7,000 off assessed value
- First-time buyer help
- California Housing Finance Agency (CalHFA)
- Transfer and recording taxes. Counties charge a documentary transfer tax of 55 cents per $500 (0.11%) on a sale, and some charter cities add their own city transfer tax on top. On the median California home ($759,500), that's about $840 in county documentary transfer tax.
- Property tax breaks for your home. The homeowners' exemption takes $7,000 off the assessed value of your main home; file once with the county assessor. Under Proposition 13, your purchase price becomes the new assessed value, which can then rise with inflation but no more than 2% a year.
- First-time buyer help. The California Housing Finance Agency (CalHFA) offers the MyHome Assistance Program through participating lenders (a deferred loan of up to 3% of the price for the down payment or closing costs). Check its site for income and price limits.
- Insurance. A standard homeowners policy doesn't cover earthquake damage; the California Earthquake Authority sells separate earthquake policies. If private insurers won't cover a home because of wildfire risk, the California FAIR Plan is the state's insurer of last resort for fire coverage.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the California metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Los Angeles, CA | $232,916 | $908,500 | $96,405 |
| Riverside, CA | $151,395 | $579,500 | $91,013 |
| San Francisco, CA | $293,723 | $1,132,900 | $135,590 |
| San Diego, CA | $234,098 | $914,700 | $109,132 |
| Sacramento, CA | $159,088 | $605,500 | $98,775 |
| San Jose, CA | $387,874+ | $1,528,500 | $164,801 |
| Fresno, CA | $110,701 | $416,200 | $74,983 |
| Bakersfield, CA | $99,095 | $363,600 | $71,596 |
| Oxnard, CA | $223,487 | $869,300 | $114,238 |
| Stockton, CA | $148,161 | $562,500 | $93,038 |
| Santa Rosa, CA | $212,575 | $822,400 | $107,274 |
| Vallejo, CA | $165,448 | $629,700 | $94,930 |
| Santa Barbara, CA | $229,334 | $900,900 | $95,637 |
| Salinas, CA | $206,690 | $808,600 | $93,290 |
With 20% down, the median home takes about $99,095 a year in the Bakersfield area and $387,874 or more in the San Jose area, compared with $196,807 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule. The Census reports a median property tax of $10,000 or more only as "$10,000+", so the figure for San Jose is a minimum.
What makes owning in California more expensive than most states
- Home prices: the median value of $759,500 is 111% above the U.S. median of $360,600.
- Property tax: about 0.71% of value a year ($447 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,473 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $415 a month on this loan.
46 states need at least 20% less income to buy their median home. States with a similar income requirement:
- Washington, DC $187,026
- Hawaii $212,642
- Massachusetts $165,477
- Washington $158,207
- New Jersey $150,876
- Colorado $148,554
Frequently asked questions
How much do you need to make to buy a house in California?
About $196,807 a year for the median home of $759,500 with 20% down at 6.95%. With 10% down it's about $230,560.
What is the property tax rate in California?
The median California homeowner pays $5,369 a year, about 0.71% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in California?
Median rent is $2,104 a month, while owning the median home costs about $4,592 a month with 20% down, before maintenance. Renting affordably takes about $84,160 a year under the 30% rule.