The California real estate market is the largest and most diverse in the United States, spanning coastal condos in San Diego, single-family homes in the Central Valley, and urban lofts in San Francisco. Statewide median home prices sit above $750,000, though prices vary dramatically by région from $350,000 in inland Fresno to over $1.5 million in San Jose. Jumbo loans are standard in most California coastal metros, where conforming loan limits are exceeded by a wide margin.
Financing California property: loan types and down payments
Buyers in California commonly use conventional loans with 10-20% down in mid-tier markets, while high-cost metros like San Francisco and Los Angeles frequently require jumbo financing at 20% or more. FHA loans are practical in the Inland Empire, Central Valley, and parts of Sacramento, where prices remain within conforming limits. VA loans provide zero-down options for military buyers at any price point that lenders approve. California property taxes under Proposition 13 are capped at 1% of assessed value with annual increases limited to 2% for existing owners.
For investors, cap rates in California run at 3-5% in coastal cities, but long-term appreciation and strong rental demand make the state a compelling hold. Multifamily and townhouse properties in growth corridors like Sacramento, the Inland Empire, and the East Bay offer better yield profiles than single-family coastal homes. Our city-by-city guides break down median prices, school ratings, and neighborhood data to help you compare markets across the state.
