How Much Does It Really Cost to Buy a Home in Hillsborough, CA in 2025?
Buying a home in Hillsborough, CA, one of the most affluent and desirable residential markets in the Bay Area, is a major financial commitment. In 2025, not only are purchase prices high, but ongoing ownership costs like taxes, insurance, maintenance, and utilities add up quickly.
Here’s a data-rich breakdown of what homebuyers should truly expect to pay.
The 2025 Hillsborough Market: By the Numbers
While prices vary widely, here’s what recent housing data shows for 2025:
Median home sale price: approx. $5.0M to $5.8M (late-year range)
Median list price: often above $7.5M to ~$8.8M depending on month and inventory
Average home values: around $4.9M–$5.9M in late 2025
Price per square foot: about $1,500+ (varies by home type & neighborhood)
💡 In simple terms: you’re generally looking at multi-million-dollar homes, with many established estates and newer luxury rebuilds pushing values even higher.
1. Purchase Price: What Buyers Actually Pay
In 2025, Hillsborough remains an ultra-high-end market:
Typical transaction prices often range from $4M–$12M+, with larger estates easily exceeding $10M. =
Median list prices near the end of 2025 have been reported above $8M in some data snapshots.
Price dispersion is wide — small to mid-sized houses sell in the $3M–$6M range, while classic estates and landmark properties can reach $10M–$40M and more (as seen with historically significant listings).
This means your purchase price directly drives every other cost below — so understanding real median value is the foundation.
2. Property Taxes: Real Annual Cost
Property tax rates in California are roughly 1.1%–1.3% of the purchase price annually (before any special assessments).
So on a median Hillsborough home:
$5,000,000 home → ~ $55,000–$65,000/year in property tax
$8,000,000 home → ~ $88,000–$104,000/year
These costs continue every year and rise with increases in assessed value or bond measures.
3. Homeowners Insurance: Expect Premium Pricing
Given large homes and high replacement values, expect insurance premiums significantly higher than the national average:
Custom architectural homes
High-end finishes and fixtures
Larger roof, plumbing, and electrical systems
These factors typically mean insurance in the thousands per year, not hundreds, and higher still on waterfront or hillside estates.
4. Maintenance & Upkeep: The Hidden Costs
Maintenance isn’t optional in Hillsborough — it’s part of estate living.
Rule-of-thumb annual maintenance budgeting:
1%–2% of home value per year
On a $6M home → $60,000–$120,000/year
On an $8M+ property → $80,000–$160,000/year or more
Typical upkeep includes:
Landscaping for large lots
Pool/spa maintenance
Roof, gutters, and hillside infrastructure
Driveway and entry systems
Luxury properties can easily push higher based on amenities and age.
5. Utilities & Routine Services
Because properties are large and lots expansive:
Water & irrigation tend to be higher
Electricity/Gas costs scale with square footage
Private trash or landscape debris services add recurring fees
Expect utility bills well above regional averages compared with smaller homes.
6. Remodeling, Expansion & Zoning
Hillsborough’s strict zoning and design review means renovations often:
Take longer to permit
Require architectural compliance
Cost more per square foot than average Bay Area remodels
This adds tens of thousands in design and entitlement costs before construction even begins.
7. Transaction Costs
On top of purchase price, buyers pay:
Escrow & title fees
Inspection & appraisal fees
Loan costs for jumbo financing
Legal/trust fees for estate planning
These normally range 0.5%–2% of the home price, depending on complexity.
Final Takeaway: Total Cost Snapshot
ComponentExample ($5M home)Example ($8M home)Property Tax~$55,000–$65,000/yr~$88,000–$104,000/yrInsurance~$10,000+/yr*~$15,000+ /yr*Maintenance~$50,000–$100,000/yr~$80,000–$160,000/yrUtilities/Services~$5,000–$15,000/yr~$7,000–$20,000/yrTransaction Costs (one-time)$25,000–$100,000+$40,000–$160,000+
*Actual insurance varies widely by property details.
Why Buyers Still Choose Hillsborough
Despite steep costs:
Hillsborough offers space and privacy rare in the Bay Area
Large lots and estate homes are nearly impossible to replicate
Long-term values tend to hold in the luxury tier
This nuanced balance of cost + scarcity + lifestyle is why buyers are still drawn to the market in 2025.