Rent vs buy in Newport Beach, CA
In Newport Beach, California, the typical rent is $4,364 /mo and a typical home costs $3,710,827.
Over 7 years, renting wins by $996k
Using 20% down and today's mortgage rate, the figures rest on Newport Beach's typical rent and the typical home value. There is no break-even point within 30 years.
Opinion, clearly labelled, math shown. Estimates, not quotes. Adjust any number and the stamp shifts.
- Renting is ahead by
- $996k after 7 years
- Break-even point
- 30 years or longer owning never catches up sooner
- What owning really costs
- $30,223 each month year 1, against $4,364 rent
Change my numbers
The stamp is built from Newport Beach's own typical rent and home value. Your own rent, price and years can flip the result.
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Enter the rent, price and down payment amounts you want to use. The stamp changes as they change.
Is renting or buying cheaper in Newport Beach?
Counting the money that comes back to you when you sell, renting costs $996,434 less over 7 years. In every year shown, renting has a lower net cost than owning, and owning never catches up within 30 years.
Rent. Owning. Net cost by year so far.
Average rent compared with the mortgage payment in Newport Beach
Rent and the mortgage don't tell the whole story. Here are all the monthly costs in year 1, using Newport Beach's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $4,364 | All of it, every month |
| Mortgage payment | $20,231 | $17,832 of it is interest in year 1 |
| Property tax | $1,546 | 0.5% of the value a year |
| Insurance | $174 | Census median for the city |
| Upkeep | $3,092 | 1% of the value a year |
| Owning, cash out | $25,044 | $2,399 of it builds equity |
| Lost return on the down payment | $6,032 | What the cash would earn yearly at 8.3% |
| Buying costs, spread out | $1,546 | 3.5% of the price over 7 years |
| True cost of owning | $30,223 | Cash paid, minus the equity portion, plus both entries listed above |
The Newport Beach verdict, explained by the numbers
- Typical home value: Zillow ZHVI, September 2026
- $3,710,827
- The typical rentZillow ZORI, September 2026
- $4,364 a month
- A 20% down payment avoids private mortgage insurance, which the engine doesn't model
- 20%
- Mortgage rate, according to Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA index for California, 1995 through 2025
- 5.3% each year
- Yearly rent growth: CPI for rent of primary residence, growth per year, 2006 to 2026
- 3.5% each year
- Savings return, including dividends and yearly rebalancing: 60% S&P 500, 40% 10-year Treasuries, 1928 to 2025
- 8.3% each year
- Property tax: Census ACS 2020-2024, Newport Beach
- 0.5% of the value
- Home insurance: Census ACS 2020-2024, Newport Beach
- $174 a month
- Maintenance, set at Fannie Mae's low end within a 1% to 4% range
- Each year, 1% of the home's value.
- Buying costs, set at Freddie Mac's midpoint within a 2% to 5% range
- 3.5% of the purchase price.
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would flip the Newport Beach result?
Each entry marks the point where Newport Beach's 7-year verdict changes. Everything else remains as it is.
When renting wins
- Home prices grow more slowly than 8.2% a year (we use California's long-run rate of 5.3%).
- The mortgage rate remains above 2.36%.
- Whenever you move in the next 30 years, owning never makes up the gap at these numbers.
When buying wins
- Home price growth runs above 8.2% a year.
- You secure a mortgage rate under 2.36% (today's rate is 7.24%).
Newport Beach compared with the other 812 cities
| Measure | Newport Beach | Median city |
|---|---|---|
| Typical home value | $3,710,827 | $422,451 |
| Typical rent | $4,364 /mo | $1,837 /mo |
| Price-to-rent ratio | 70.9 (#1 of 813) | 18.5 |
| Home prices, last 10 years | 8.7% a year | 6.2% a year |
| Rents, last 5 years | 5.2% a year | 4% a year |
| Property tax | 0.50% | 0.87% |
| Households that rent | 48% | 42% |
Sources used: Zillow ZHVI and ZORI, Census ACS 2020-2024.
California's other cities
- Rent. Los Angeles, CA shows renting ahead by $111k.
- Rent. San Diego, CA shows renting ahead by $108k.
- Rent. San Jose, CA shows renting ahead by $210k.
- Rent. San Francisco, CA shows renting ahead by $128k.
- Buying comes out ahead in Fresno, CA by $22k.
- In Sacramento, CA, the result is a toss-up, with renting ahead by $3k.
- Renting comes out ahead in Long Beach, CA by $111k.
- Renting comes out ahead in Oakland, CA by $44k.
- Buying comes out ahead in Bakersfield, CA by $11k.
- Renting comes out ahead in Anaheim, CA by $115k.
- Buying comes out ahead in Stockton, CA by $16k.
- Renting comes out ahead in Riverside, CA by $27k.