Rent vs buy in Lakewood, CA
A typical home in Lakewood, California costs $872,068, and typical rent is $3,401 /mo.
After 7 years, renting is ahead by $26k.
Today's mortgage rate and a 20% down payment apply to Lakewood's typical rent and home value. Break-even point: year 9.
Clearly labeled opinion, with the calculations shown. Estimates, not quotes. If you change one number, the stamp updates.
- Renting leads by
- $26k after 7 years
- Break-even point
- year 9 when owning catches up
- Actual cost of owning
- $7,243 /mo year 1, against $3,401 rent
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Is renting or buying cheaper in Lakewood?
Over 7 years, renting saves $25,732 after counting the money returned when you sell. For the first 8 years, renting costs less. By year 9, owning catches up.
Rent. Buy. Net cost to date, by year.
Average rent compared with mortgage payment in Lakewood
Rent and mortgage payments don't tell the whole story. Here are all monthly costs for year 1 at Lakewood's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,401 | All of it, every month |
| Mortgage payment | $4,755 | $4,191 of it is interest in year 1 |
| Property tax | $465 | 0.64% of the value a year |
| Insurance | $80 | Census median for the city |
| Upkeep | $727 | 1% of the value a year |
| Owning, cash out | $6,026 | $564 of it builds equity |
| Lost return on the down payment | $1,417 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $363 | 3.5% of the price over 7 years |
| True cost of owning | $7,243 | Cash out, minus the equity portion, plus the two amounts above |
The figures behind Lakewood's verdict
- Typical home valueZillow ZHVI, September 2026
- $872,068
- Typical rentZillow ZORI, September 2026
- $3,401 /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, Lakewood
- 0.64% of value
- Home insuranceCensus ACS 2020-2024, Lakewood
- $80 /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 could change the Lakewood result?
Each line shows where Lakewood's 7-year verdict changes, with all other factors staying the same.
Renting wins if
- This condition is met when home prices grow below 5.6% a year. The rate used is 5.3%, California's long-run rate.
- This condition applies if the mortgage rate remains above 6.72%.
- This kind of home rents for less than $3,680 each month (typical here: $3,401).
- Before year 9, you move.
When buying comes out ahead
- Home prices rise at a rate faster than 5.6% a year.
- You secure a mortgage rate under 6.72% (today's is 7.24%).
- You would pay more than $3,680 a month to rent that same home.
- You remain there for 9 years or more.
How Lakewood compares with the other 812 cities
| Measure | Lakewood | Median city |
|---|---|---|
| Typical home value | $872,068 | $422,451 |
| Typical rent | $3,401 /mo | $1,837 /mo |
| Price-to-rent ratio | 21.4 (#275 of 813) | 18.5 |
| Home prices, last 10 years | 6.2% a year | 6.2% a year |
| Rents, last 5 years | 5.7% a year | 4% a year |
| Property tax | 0.64% | 0.87% |
| Households that rent | 29% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Rent. Los Angeles, CA. Here, renting comes out ahead by $111k.
- Rent. San Diego, CA. Renting comes out ahead by $108k.
- Rent. San Jose, CA. Renting is ahead by $210k.
- Rent. San Francisco, CA. Renting is ahead by $128k.
- Buy. Fresno, CA. Buying is ahead by $22k.
- The result is a toss-up for Sacramento, CA, with renting leading by $3k.
- Renting comes out ahead by $111k in Long Beach, CA.
- Rent. Oakland, CA. Renting comes out ahead by $44k.
- Buy. Bakersfield, CA. Buying is ahead by $11k.
- Rent. Anaheim, CA. Renting is ahead by $115k.
- Buy. Stockton, CA. Buying is ahead by $16k.
- Rent. Riverside, CA. Renting is ahead by $27k.