A retiree who used to live in a two-story bedroom recently underwent knee surgery. Climbing stairs several times a day became burdensome. During the rehabilitation period, they set up a temporary bed on the first floor and realized that it would have been much more convenient if they had a home without stairs from the start. Eventually, they began looking into moving to a single-story condo or a one-level townhome. This is a common scenario seen in consultations in Monterey.

Let's start with the climate in Monterey. It is often foggy, and the temperature variation between seasons is not significant. Many homes do not use air conditioning even in the summer. However, the electricity rates are not cheap. The average rate from PG&E for 2026 is expected to be around 39 to 41 cents per kilowatt-hour (EnergySage, PG&E data). This is among the higher rates in California. On the other hand, due to lower usage, the actual bills are manageable. The average monthly electricity bill for a Monterey household is about $200, totaling around $2,400 annually. Thanks to the climate, even though the rate per unit is high, the actual burden is relatively manageable.

Next, let's look at home prices and maintenance fees. As of May 2026, the average home value in Monterey is around $1.18 million, with a median listing price of $1.09 million (Zillow). Condos or townhomes start lower than this, but HOA fees (Homeowners Association fees) come into play. The median HOA cost in Monterey County is $413 per month. Generally, townhomes range from $200 to $400 per month, while condos range from $600 to $900. Single-story structures without stairs or buildings with elevators tend to have higher maintenance fees.

Insurance costs are also worth noting. For single-family homes, the owner must insure the entire building and any yard structures, but for condos or townhomes, the HOA often collectively insures the building's framework, which can reduce individual insurance costs. However, it is essential to check whether the HOA has sufficient reserves for long-term maintenance. In coastal areas like Monterey, where humidity is high, the frequency of managing the building's exterior can lead to reserve amounts being reflected in the maintenance fees.

Property taxes should also be checked. In California, under Proposition 13, the basic tax rate is 1% of the purchase price, and with local taxes added, the effective tax rate ranges from 1.1% to 1.3%. Homes that have been owned for a long time have lower assessed values, resulting in lower property taxes. The issue arises when selling a home and purchasing a new one, as this low assessed value disappears. If you are over 55, Proposition 19 allows you to transfer the existing tax base to a new home up to three times. This can be beneficial when downsizing due to stair issues, as it allows for a move without significantly increasing property tax burdens. Timing of the move is also a consideration. When health issues like knee surgery are involved, it can be challenging to sell and buy simultaneously. Whether to rent temporarily while slowly selecting a property or to use the existing home as collateral for a bridge loan to purchase a condo first depends on individual financial situations, so it is advisable to consult with a loan officer in advance. Given that Monterey has a limited inventory, it may take time to find a condo with the desired floor level and layout, which should also be factored in. When viewing properties, it is recommended to create a checklist to verify details that affect mobility, such as the presence of elevators, ramps to entrances, and the installation of bathroom grab bars.

When health is not what it used to be, the convenience of space often takes precedence over maintenance costs. However, it is better to compare the total living expenses, including HOA fees, insurance, property taxes, and electricity bills. This article is not investment or legal advice. Before proceeding with any transactions, it is advisable to consult with a real estate professional and a tax advisor.