Prince Harry and Meghan Markle may be ready to offload their Montecito mansion as maintenance costs for the sprawling estate climb past $1m annually.

Industry sources in Santa Barbara told the New York Post that discussions are already underway to sell the estate off-market ahead of their return to Britain this month with Prince Archie, 7, and Princess Lilibet, 5.

Local broker Jason Streatfeild said a discreet off-market deal was the most likely outcome.

“Many times properties like this will trade off market with an NDA signed and all of the terms sealed until the property records at the county,” Mr Streatfeild told the outlet.

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

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Prince Harry and Meghan Markle may be ready to offload their Montecito mansion. Picture: Getty Images

The move ends a six-year run in California for the Duke and Duchess of Sussex, who stepped back from royal duties in 2020.

Their children are set to start school in Britain in September, with King Charles informed of the relocation over the weekend.

While the couple previously claimed they intended to keep both Montecito and their vacation home in Portugal, local property records show the California numbers have become unsustainable.

Purchased through their company Rockbridge LLC for $21m ($US14.65m) in 2020 with a $9.52m adjustable-rate mortgage, the estate carries staggering fixed expenses.

Harry and Meghan have been living in their Montecito property for nearly six years. Picture: Google Maps

Monthly loan repayments reach $60,000 ($US43,000) while annual property taxes hit $210,000 ($US149,668) in 2025, taking annual running costs past $1m ($US650,000).

“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 source told the NY Post.

“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 added.

“But if they do decide to plant roots in the UK, I don’t see a world where they will keep this home.”

Though Montecito property values have nearly doubled since 2020, sources told the New York Post that hanging onto the address had become too steep as wider business deals wound down

The couple’s five-year, $US100m production deal with Netflix was recently downgraded to a smaller first-look arrangement.

Meghan’s lifestyle brand, As Ever, is also facing a potential $US5m write-off on unsold stock after a website glitch revealed 650,000 inventory units sitting in warehouses.

Parts of this story first appeared in the New York Post and was republished with permission.

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