Rent vs buy in Pasadena, CA
In Pasadena, California, the typical rent is $3,010 /mo and the typical home value is $1,186,459.
Renting leads by $186k across 7 years
Using today's mortgage rate and 20% down, the calculation applies Pasadena's typical rent and home value The break-even point is year 21.
Clearly marked opinion with the math shown. These figures are estimates, not quotes. Adjust a figure, and the stamp updates.
- Rent leads by
- $186k after 7 years
- Break-even point
- Year 21 when owning catches up
- Actual cost of ownership
- $9,854 each month year 1, against $3,010 rent
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In Pasadena, is renting or buying cheaper?
When money returned by your sale is counted, renting is $185,764 cheaper over 7 years. For the first 20 years, renting costs less. Owning doesn't catch up until year 21.
Renting option. Home ownership Net cost by year so far.
Pasadena: average rent compared with mortgage payment
Rent and mortgage costs leave out part of the picture. Based on Pasadena's typical price, these are all the monthly costs for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,010 | All of it, every month |
| Mortgage payment | $6,469 | $5,702 of it is interest in year 1 |
| Property tax | $623 | 0.63% of the value a year |
| Insurance | $118 | Census median for the city |
| Upkeep | $989 | 1% of the value a year |
| Owning, cash out | $8,198 | $767 of it builds equity |
| Lost return on the down payment | $1,928 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $494 | 3.5% of the price over 7 years |
| True cost of owning | $9,854 | Cash out minus the equity part plus both lines above |
The Pasadena decision, explained by the numbers
- Typical value of a homeZillow ZHVI, September 2026
- $1,186,459
- Typical rent: Zillow ZORI, September 2026
- $3,010 each month
- With 20% down, you avoid private mortgage insurance. The engine doesn't model it.
- 20%
- Rate used for mortgages: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- House price growth: FHFA house price index covering California, 1995 to 2025
- 5.3% yearly
- Rent growth: CPI rent of primary residence, annual growth 2006 to 2026
- A yearly rate of 3.5%
- Savings return: 60% S&P 500, with dividends, plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- Each year, 8.3%
- Local property tax: Census ACS 2020-2024, Pasadena
- A share of 0.63% of the value
- Home insurance costs: Census ACS 2020-2024, Pasadena
- $118 each month
- Upkeep: Fannie Mae, low end of 1% to 4%
- Each year, 1% of the value
- Home purchase costs: Freddie Mac, middle of 2% to 5%
- A share of 3.5% of the price
- Selling costsAgent commission and closing costs
- A share of 6% of the price
What would reverse the Pasadena result?
Each line marks a threshold where Pasadena's 7-year verdict changes. Everything else remains the same.
When renting comes out ahead
- Home prices rise by less than 7.0% a year, using California's long-run rate of 5.3%.
- The mortgage rate remains above 4.44%.
- For a home like this, rent is less than $5,000 a month. Here, the typical rent is $3,010.
- Your move happens before year 21.
When buying comes out ahead
- Home prices rise by more than 7.0% a year.
- You secure a mortgage rate under 4.44%, compared with today's rate of 7.24%.
- The same home would cost more than $5,000 a month to rent.
- You remain there for 21 years or longer.
How Pasadena compares with 812 other cities
| Measure | Pasadena | Median city |
|---|---|---|
| Typical home value | $1,186,459 | $422,451 |
| Typical rent | $3,010 /mo | $1,837 /mo |
| Price-to-rent ratio | 32.8 (#43 of 813) | 18.5 |
| Home prices, last 10 years | 6% a year | 6.2% a year |
| Rents, last 5 years | 4% a year | 4% a year |
| Property tax | 0.63% | 0.87% |
| Households that rent | 57% | 42% |
Sources: Zillow's ZHVI and ZORI, Census ACS 2020-2024.
Other California cities
- Los Angeles, CA favors renting 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.
- A toss-up: Sacramento, CA favors renting by $3k.
- Long Beach, CA favors renting by $111k.
- Rent. Oakland, CA. Renting comes out ahead by $44k.
- Buying wins by $11k in Bakersfield, CA. Buy.
- Renting wins by $115k in Anaheim, CA. Rent.
- Buying wins by $16k in Stockton, CA. Buy.
- Renting wins by $27k in Riverside, CA. Rent.