Rent vs buy in Gilroy, CA
The typical rent in Gilroy, California is $3,099 /mo, and the typical home is $1,044,931.
Over 7 years, renting wins by $140k
Using Gilroy's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point: year 18.
Our opinion, clearly labelled, with the math shown. These are estimates, not quotes. Change any number and the stamp changes with it.
- Renting is ahead by
- $140k after 7 years
- Break-even point
- Year 18 when owning catches up
- What owning really costs
- $8,861 /mo year 1, against $3,099 rent
Change my numbers
Gilroy's typical rent and home value are what the stamp uses. It can flip depending on your rent, your price and your years.
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Enter a rent, price and down payment of your own. Each change updates the stamp.
In Gilroy, is it cheaper to rent or to buy?
Over 7 years, renting saves $139,628 after including the money returned by a sale. For the first 17 years, renting is the cheaper choice. In year 18, owning catches up.
Renting. Owning. Net cost to date, year by year.
Average rent compared with mortgage payment in Gilroy
Rent and the mortgage aren't everything. Every monthly cost for year 1 at Gilroy's typical price appears here.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,099 | All of it, every month |
| Mortgage payment | $5,697 | $5,021 of it is interest in year 1 |
| Property tax | $723 | 0.83% of the value a year |
| Insurance | $112 | Census median for the city |
| Upkeep | $871 | 1% of the value a year |
| Owning, cash out | $7,402 | $676 of it builds equity |
| Lost return on the down payment | $1,698 | Annual return on the cash: 8.3% |
| Buying costs, spread out | $435 | 3.5% of the price over 7 years |
| True cost of owning | $8,861 | Cash out after deducting equity, then add both lines above |
What the numbers show about Gilroy's verdict
- Typical home valueZillow ZHVI, September 2026
- $1,044,931
- Typical rentZillow ZORI, September 2026
- $3,099 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, California, 1995 to 2025
- 5.3% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Gilroy
- 0.83% of value
- Home insuranceCensus ACS 2020-2024, Gilroy
- $112 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
In Gilroy, what would flip the result?
Each line marks the point where the 7-year verdict for Gilroy changes, with everything else held as it is.
Renting wins if
- Annual home price growth is under 6.8% (we use 5.3%, from California's long-term growth rate).
- A mortgage rate remains higher than 4.85%.
- A home like this has a monthly rent below $4,590, while the local typical amount is $3,099.
- Your move happens before year 18.
Buying wins if
- Home prices rise by more than 6.8% a year.
- You secure a mortgage rate under 4.85% (currently, it's 7.24%).
- Monthly rent for that home would be more than $4,590.
- You stay for 18 years or more.
Gilroy compared with the other 812 cities
| Measure | Gilroy | Median city |
|---|---|---|
| Typical home value | $1,044,931 | $422,451 |
| Typical rent | $3,099 /mo | $1,837 /mo |
| Price-to-rent ratio | 28.1 (#90 of 813) | 18.5 |
| Home prices, last 10 years | 5.1% a year | 6.2% a year |
| Property tax | 0.83% | 0.87% |
| Households that rent | 38% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other California cities
- Rent. Los Angeles, CA. Renting leads by $111k.
- Rent. San Diego, CA. Renting comes out ahead by $108k.
- Rent. San Jose, CA. Renting comes out ahead by $210k.
- Rent. San Francisco, CA. Renting comes out ahead by $128k.
- Buy. Fresno, CA. Buying comes out ahead by $22k.
- Toss-up. Sacramento, CA. Renting leads by $3k in this toss-up.
- Rent. Long Beach, CA. Renting comes out ahead by $111k.
- Rent. Oakland, CA. Here renting wins by $44k.
- Buying wins by $11k in Bakersfield, CA.
- Renting wins by $115k in Anaheim, CA.
- Buy. Stockton, CA. Buying comes out ahead by $16k.
- Rent. Riverside, CA. Renting leads by $27k.