California vs Texas: mortgage & affordability comparison
Side-by-side: median home price, effective property tax, monthly PITI on the median home, and the income required to afford it under the 28% front-end DTI rule. Adjust the rate and down payment to model your own scenario.
| Metric | California | Texas |
|---|---|---|
| Median home price | $770,000 | $300,000 |
| Property tax rate | 1.25% | 1.81% |
| Monthly principal & interest | $4,541 | $1,769 |
| Monthly property tax | $802 | $453 |
| Monthly PMI | $462 | $180 |
| Monthly PITI total | $5,925 | $2,522 |
| Income needed (28% rule) | $253,930 | $108,073 |
| Median household income | $91,000 | $73,000 |
Which state is more affordable, really?
On paper, Texas comes out ahead at the median-home level — about $3,403/month less in PITI on a typical home with 10% down at today's rates. Multiply by 360 payments and the lifetime difference runs into the $1,225,080 range — before refinances or moves.
But "affordable" is two numbers, not one. The income ratio matters just as much as the dollar amount. California's median household earns $91,000 vs Texas at $73,000; against each state's median home, you'd need $253,930 in California and $108,073 in Texas to qualify under the standard 28% rule. The smaller the gap between "needed" and "median," the less stretched the typical buyer is.
Property tax is the most under-appreciated driver. California bills 1.25% per year vs Texas's 1.81% — that single line adds or removes $350/month on the median home, more than most rate moves of 0.25%.
Beyond the mortgage
This page compares the housing math only — the part lenders look at. State income tax, sales tax, insurance (hurricane/wildfire zones push it up sharply), and HOA prevalence aren't in the PITI number. On the income side, remote work changes the equation: earning a California salary while paying Texas costs (or vice versa) can flip the verdict.
For the deepest dive on each state, open the dedicated pages and run your real numbers in the calculator: California affordability → · Texas affordability →