Rent vs buy in Aliso Viejo, CA
In Aliso Viejo, California, the typical rent is $3,484 /mo and the typical home is $992,406.
Over 7 years, renting comes out ahead by $69k
Today's mortgage rate and 20% down go into the math, based on the typical rent and home value of Aliso Viejo's market. The break-even point is year 12.
A clearly labeled opinion with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Renting leads by
- $69k after 7 years
- Break-even point
- Year 12 when owning catches up
- The real cost of owning
- $8,280 a month year 1, against $3,484 rent
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In Aliso Viejo, does renting or buying cost you less?
Over 7 years, renting costs $68,737 less, once you count the money you get back when you sell. For the first 11 years, renting costs less. In year 12, owning catches up.
Rent. Buying. Net cost to date, by year.
In Aliso Viejo, average rent vs mortgage payment
Rent and mortgage payments don't tell the whole story. Here are all monthly costs in year 1 at the typical price in Aliso Viejo's market.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,484 | All of it, every month |
| Mortgage payment | $5,411 | $4,769 of it is interest in year 1 |
| Property tax | $546 | 0.66% of the value a year |
| Insurance | $112 | Census median for the city |
| Upkeep | $827 | 1% of the value a year |
| Owning, cash out | $6,895 | $642 of it builds equity |
| Lost return on the down payment | $1,613 | The yearly return on that cash at 8.3% |
| Buying costs, spread out | $414 | 3.5% of the price over 7 years |
| True cost of owning | $8,280 | Take cash out, subtract the equity part and add the two lines above. |
The Aliso Viejo verdict in numbers
- Typical home value: Zillow: ZHVI, September 2026
- $992,406
- Typical rent: Zillow: ZORI, September 2026
- $3,484 a month
- Down payment: 20% avoids private mortgage insurance. The engine does not model it.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey, FRED MORTGAGE30US
- 7.24%
- Growth in home priceshouse price index from FHFA, California, 1995 to 2025
- A yearly rate of 5.3%
- Rent growth: CPI rent of primary residence, growth each year from 2006 to 2026
- Each year, 3.5%
- Return on savings: 60% in the S&P 500 with dividends, plus 40% in 10-year Treasuries, rebalanced each year, 1928 to 2025
- Each year, 8.3%
- Property tax: Census data: ACS 2020-2024, Aliso Viejo
- Value times 0.66%
- Home insurance: Census data: ACS 2020-2024, Aliso Viejo
- Monthly amount: $112
- Maintenanceat the low end of 1% to 4%, Fannie Mae
- Each year, 1% of the value
- Buying costsFreddie Mac, 2% to 5% midpoint
- Price times 3.5%
- Selling costsAgent commission and closing costs
- Price times 6%
In Aliso Viejo, what would make it flip?
Each line shows where the 7-year verdict for Aliso Viejo changes, while everything else stays as it is.
Renting comes out ahead when
- Home prices grow at under 6.1% a year, and we use California's long-run rate of 5.3%.
- The rate for a mortgage stays above 6.01%.
- For a home like this, monthly rent runs under $4,220; the typical rent is $3,484 in this city.
- Your move happens before year 12.
Buying comes out ahead when
- Home prices grow at more than 6.1% a year.
- You get a mortgage rate under 6.01% locked in (today's is 7.24%).
- The same home would cost over $4,220 a month to rent.
- You stay for 12 years or more.
How Aliso Viejo compares with the other 812 cities
| Measure | Aliso Viejo | Median city |
|---|---|---|
| Typical home value | $992,406 | $422,451 |
| Typical rent | $3,484 /mo | $1,837 /mo |
| Price-to-rent ratio | 23.7 (#178 of 813) | 18.5 |
| Home prices, last 10 years | 6.6% a year | 6.2% a year |
| Rents, last 5 years | 4.4% a year | 4% a year |
| Property tax | 0.66% | 0.87% |
| Households that rent | 43% | 42% |
Data from: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other California cities
- Renting wins by $111k in Los Angeles, CA.
- Renting wins by $108k in San Diego, CA.
- Renting wins by $210k in San Jose, CA.
- Renting wins by $128k in San Francisco, CA.
- Buying wins by $22k in Fresno, CA.
- Toss-up in Sacramento, CA: renting ahead by $3k.
- Renting wins by $111k in Long Beach, CA.
- Renting wins by $44k in Oakland, CA.
- Buy. In Bakersfield, CA, buying wins by $11k.
- Rent. In Anaheim, CA, renting wins by $115k.
- Buy. In Stockton, CA, buying wins by $16k.
- Rent. In Riverside, CA, renting wins by $27k.