Rent vs buy in Laguna Niguel, CA
A typical home in Laguna Niguel, California, costs $1,493,093, while typical rent is $3,343 /mo.
Renting is ahead by $272k over 7 years
Today's mortgage rate and a 20% down payment are paired with the typical rent and home value in Laguna Niguel's market. You reach break-even in year 25.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp updates when you change a number.
- Rent leads by
- $272k after 7 years
- Break-even point
- Year 25 when owning catches up
- Actual cost of ownership
- $12,370 /mo year 1, against $3,343 rent
Change my numbers
The stamp relies on the typical rent and home value for Laguna Niguel's market. Changing your rent, price and time period can reverse the result.
Are the numbers you're using different from the city's?
Enter your rent, price and down payment. Your entries change the stamp.
Is renting or buying cheaper in Laguna Niguel?
After counting the money returned to you when you sell, renting costs $272,174 less over 7 years. For the first 24 years, renting costs less. In year 25, owning catches up.
Renting. Owning. Net cost to date, by year.
Average rent compared with a mortgage payment in Laguna Niguel
At Laguna Niguel's typical price, rent and the mortgage don't cover all costs. Here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,343 | All of it, every month |
| Mortgage payment | $8,140 | $7,175 of it is interest in year 1 |
| Property tax | $747 | 0.6% of the value a year |
| Insurance | $155 | Census median for the city |
| Upkeep | $1,244 | 1% of the value a year |
| Owning, cash out | $10,286 | $965 of it builds equity |
| Lost return on the down payment | $2,427 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $622 | 3.5% of the price over 7 years |
| True cost of owning | $12,370 | Cash paid, minus the equity portion, plus the two amounts above |
The figures behind Laguna Niguel's result
- Typical home valueZillow ZHVI, September 2026
- $1,493,093
- Typical rentZillow ZORI, September 2026
- $3,343 /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, Laguna Niguel
- 0.6% of value
- Home insuranceCensus ACS 2020-2024, Laguna Niguel
- $155 /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
What would make the Laguna Niguel result flip?
All other assumptions stay fixed as each line shows the point where Laguna Niguel's 7-year verdict changes.
Renting comes out ahead when
- Home prices rise more slowly than 7.3% a year (5.3% is our figure, California's long-run rate).
- The rate for mortgages holds above 3.97%.
- A similar home rents for under $6,260 a month (the local typical rent is $3,343).
- Your move happens before year 25.
Buying comes out ahead when
- Home prices grow at more than 7.3% a year.
- You secure a mortgage rate under 3.97% (today's is 7.24%).
- If you rented the same home, you'd pay more than $6,260 a month.
- You remain in the home for 25 years or longer.
Comparing Laguna Niguel with the other 812 cities
| Measure | Laguna Niguel | Median city |
|---|---|---|
| Typical home value | $1,493,093 | $422,451 |
| Typical rent | $3,343 /mo | $1,837 /mo |
| Price-to-rent ratio | 37.2 (#18 of 813) | 18.5 |
| Home prices, last 10 years | 8.1% a year | 6.2% a year |
| Rents, last 5 years | 4.2% a year | 4% a year |
| Property tax | 0.60% | 0.87% |
| Households that rent | 33% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Rent wins by $111k in Los Angeles, CA.
- Rent wins by $108k in San Diego, CA.
- Rent wins by $210k in San Jose, CA.
- Rent wins by $128k in San Francisco, CA.
- Buy. In Fresno, CA, buying is better by $22k.
- Toss-up. Sacramento, CA is too close, with renting ahead by $3k.
- Rent wins by $111k in Long Beach, CA.
- Rent wins by $44k in Oakland, CA.
- Buy. In Bakersfield, CA, buying is better by $11k.
- Rent. In Anaheim, CA, renting is better by $115k.
- Buy. In Stockton, CA, buying is better by $16k.
- Rent. In Riverside, CA, renting is better by $27k.