Prince Harry and Meghan Markle say their Montecito mansion will remain theirs as the family relocates to Britain, but questions are already being raised in Santa Barbara’s luxury property market about whether keeping the sprawling California estate will make financial sense.

A source in the local real estate market said there have been “rumblings” that the Duke and Duchess of Sussex could eventually sell the property, adding that “every broker wants that listing.”

For now, however, that remains speculation. Harry and Meghan have said they intend to retain both their Montecito home and their vacation property in Portugal.

What is clear from property records is that maintaining the California estate comes with a substantial price tag. Mortgage payments and property taxes alone are estimated to exceed $600,000 annually, before insurance, security and upkeep are taken into account.

Questions grow over the future of the Montecito estate

Jason Streatfeild, a Douglas Elliman broker covering Santa Barbara and Montecito, said high-value properties of this kind do not necessarily appear publicly for sale immediately.

“Many times properties like this will trade off market with a nondisclosure agreement signed and all of the terms sealed until the property records at the county,” Streatfeild said.

He suggested it was possible discussions about the Sussex property could already be happening privately.

“It’s very possible that they would be listing it, but I have a strong feeling that it’s already being discussed and shown,” he said.

There has been no confirmation that the property is currently being marketed.

The speculation comes as Harry and Meghan prepare to move to the UK this month with Prince Archie, 7, and Princess Lilibet, 5.

The relocation brings to an end a six-year period based in California that began after the couple stepped back from royal duties in 2020.

Archie and Lilibet are expected to begin school in Britain in September, while Harry and Meghan plan to establish a new private residence in the country. Its location has not been disclosed.

King Charles was informed about the move over the weekend.

The California home carries major annual costs

Santa Barbara County records show that Rockbridge LLC, the Sussexes’ company, purchased the 7.38-acre Montecito estate for $14.65 million on June 9, 2020.

Three days later, the company secured a $9.52 million loan from City National Bank.

The adjustable-rate mortgage began at 2.49% and can rise as high as 7.49% after it resets in July 2030.

With no refinancing recorded, the loan is estimated to cost between $40,000 and $43,000 per month on a conventional 30-year term.

That puts annual mortgage payments above $480,000 — before property taxes, insurance, security, landscaping or other costs associated with maintaining the estate.

Property taxes add another significant expense.

The mansion’s 2025 Santa Barbara County property tax bill was $149,668, based on an assessed value of $14.38 million.

County records show the bill has increased during the Sussexes’ ownership under California’s Proposition 13 rules. It stood at $138,629 in 2021-2022, then increased to $141,645, $144,229 and $146,930 before reaching $149,668.

Across those five years, Harry and Meghan have paid approximately $721,000 in property taxes alone.

When mortgage payments are combined with taxes, insurance, security and maintenance of nearly eight acres of grounds, the annual fixed cost of keeping the property is estimated to exceed $650,000.

A costly property as the Sussexes’ business picture changes

Those expenses come as Harry and Meghan’s entertainment ventures have undergone changes.

Their five-year production agreement with Netflix, reportedly worth $100 million, ended without a full renewal and was replaced by a smaller first-look arrangement.

Harry could also face an eight-figure financial liability to a British newspaper company following the loss of a legal case.

The couple’s Netflix documentary “Cookie Queens,” which Meghan promoted ahead of its release, reportedly generated between $328,000 and $354,000 at the box office, placing it behind “CatVideoFest 2026,” a compilation of cat videos that was playing in roughly one-third as many theaters.

Meghan’s As Ever lifestyle business has also faced questions about inventory. A website glitch in January reportedly exposed approximately 650,000 unsold units, while insiders estimated that unsold jam could potentially result in a write-off of around $5 million once the perishable products pass their sell-by dates.

Against that backdrop, the cost of maintaining a large California property while spending considerably more time in Britain has become part of the speculation surrounding the mansion’s future.

“I cannot imagine ever wanting to let go of this beautiful piece of property, but hanging onto it comes at a steep cost, so they might have to,” the Santa Barbara real estate source said.

The source suggested any decision may not come immediately.

“It likely will be a few months before they list, or maybe they will give the UK a year first to see how that plays out,” the source said. “But if they do decide to plant roots in the UK, I don’t see a world where they will keep this home.”

How much could the mansion be worth today?

If Harry and Meghan eventually decided to sell, they could potentially benefit from the dramatic rise in Montecito property values since their 2020 purchase.

Streatfeild said he has already received numerous questions about what the estate might command.

“Everyone’s kind of asked me what I think the property is worth, what they would list it for and what it would sell for,” he said.

The estate includes approximately 18,000 square feet of living space across seven acres, with nine bedrooms, 17 bathrooms, ocean views, a swimming pool, tennis court and extensive grounds.

According to Streatfeild, three Montecito properties have sold for more than $50 million this year.

Based on the Sussex estate’s size, features and location, he estimated it could be listed at around $75 million and potentially sell for between $55 million and $65 million.

That would represent a dramatic increase over what Harry and Meghan paid six years ago.

The property had originally been listed for $34.5 million in 2015 and remained on the market for five years before the Sussexes acquired it for approximately $14.7 million in 2020.

“The demand for Montecito has exploded and the average sales price is just about doubled since they purchased the property,” Streatfeild said.

As a comparison, he pointed to Adam Levine’s property, which sold for $60 million despite being smaller.

“Adam Levine’s property sold for $60 million, and it’s 13,000 square feet on three acres, and this is 18,000 feet on seven acres,” he said.

Streatfeild added that he would expect Harry and Meghan to have advisers capable of assessing the estate’s current market value.

For now, the Sussexes maintain that the Montecito property is not being given up as they return to Britain.

But between the mansion’s substantial annual carrying costs, the family’s reduced time in California and the enormous rise in Montecito property values since 2020, speculation about whether they will ultimately hold onto the estate is unlikely to disappear.

Representatives for Harry and Meghan did not respond to a request for comment.