When meeting Korean families looking at historic Craftsman homes, the first concern they often express is, 'This house is so beautiful, but how much will it cost to maintain?'

In California, property taxes are fixed at a base rate of 1% of the purchase price according to Proposition 13, with additional local bond repayments determining the effective tax rate. The average effective tax rate in LA County is known to range from approximately 1.15% to 1.35%.

The median sale price in Pasadena over the last three months is around $1.2 million. Applying an effective tax rate of 1.2%, the annual property tax is estimated to be about $14,400.

Since the Eaton Canyon fire that swept through the nearby Altadena area in early 2025, insurance renewals for homes adjacent to the hills north of Pasadena have become more challenging, and many neighbors have noticeably switched to the state fire insurance pool, the FAIR Plan. For homes near the hills, expect insurance costs to be over $2,500 to $4,000 annually, while flatland homes are estimated to be around $1,700 to $2,200.

Maintenance costs are typically 1% to 2% of the home value, but given that Pasadena has many historic Craftsman and Spanish Revival style homes built in the 1900s to 1930s, applying the higher end of 1.5% to 2% is more realistic. For a $1.2 million home, it is advisable to set aside an annual maintenance budget of about $18,000 to $24,000.

Compared to nearby South Pasadena and Glendale, the tax structure is similar, but Pasadena is characterized by significant differences in insurance premiums based on how close homes are to the hills on the fire risk map.

If you are a homeowner, don't miss the homestead exemption that allows a $7,000 deduction from the assessed value, and if you have lost your home to a fire or are over 55, be sure to check the Proposition 19 property tax transfer program as well.

When combining property taxes, insurance, and maintenance costs, the annual holding cost for a median home in Pasadena is estimated to be around $34,000 to $36,000. While older homes have charm, it's important to fully consider the accompanying maintenance costs before making a purchase.