Rent vs buy in Redondo Beach, CA
In California, the typical rent in Redondo Beach, California is $3,483 /mo and the typical home value is $1,473,478.
Over 7 years, renting comes out ahead by $255k
Today's mortgage rate and a 20% down payment apply alongside rent and home values typical for Redondo Beach's market. The break-even point is year 24.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. Adjusting a number changes the stamp.
- Renting leads by
- $255k after 7 years
- Break-even point
- At year 24 when owning catches up
- Actual cost of ownership
- $12,236 each month year 1, against $3,483 rent
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In Redondo Beach, is renting or buying cheaper?
After counting the money returned to you when you sell, renting costs $254,916 less over 7 years. For the first 23 years, renting costs less. In year 24, owning catches up.
Rent option. Ownership option. Net cost to date, organized by year.
Redondo Beach: average rent compared with mortgage payments
Neither rent nor the mortgage payment tells the whole story. These are all monthly costs in year 1, based on Redondo Beach's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,483 | All of it, every month |
| Mortgage payment | $8,033 | $7,081 of it is interest in year 1 |
| Property tax | $810 | 0.66% of the value a year |
| Insurance | $108 | Census median for the city |
| Upkeep | $1,228 | 1% of the value a year |
| Owning, cash out | $10,180 | $953 of it builds equity |
| Lost return on the down payment | $2,395 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $614 | 3.5% of the price over 7 years |
| True cost of owning | $12,236 | Cash out minus the equity portion, plus the two amounts above |
The numbers behind Redondo Beach's verdict
- Typical home valueZillow ZHVI, September 2026
- $1,473,478
- Typical rentZillow ZORI, September 2026
- $3,483 /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, Redondo Beach
- 0.66% of value
- Home insuranceCensus ACS 2020-2024, Redondo Beach
- $108 /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 change the result in Redondo Beach?
Every line shows the point where Redondo Beach's 7-year verdict changes. All other details stay the same.
Renting comes out ahead when
- Home prices rise at a pace below 7.2% each year; for our estimates, we use California's long-run rate of 5.3%.
- The mortgage rate remains higher than 4.14%.
- A home like this has a monthly rent below $6,210 (the typical rent here is $3,483).
- You make your move before year 24.
Buying comes out ahead when
- Home price growth is faster than 7.2% a year.
- You secure a rate under 4.14% for your mortgage (today's is 7.24%).
- The same home would cost over $6,210 a month to rent.
- You remain for 24 years or more.
Redondo Beach compared with the other 812 cities
| Measure | Redondo Beach | Median city |
|---|---|---|
| Typical home value | $1,473,478 | $422,451 |
| Typical rent | $3,483 /mo | $1,837 /mo |
| Price-to-rent ratio | 35.3 (#30 of 813) | 18.5 |
| Home prices, last 10 years | 6.1% a year | 6.2% a year |
| Rents, last 5 years | 4.2% a year | 4% a year |
| Property tax | 0.66% | 0.87% |
| Households that rent | 47% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More California cities
- For Los Angeles, CA, renting comes out ahead by $111k.
- For San Diego, CA, renting comes out ahead by $108k.
- For San Jose, CA, renting comes out ahead by $210k.
- For San Francisco, CA, renting comes out ahead by $128k.
- For Fresno, CA, buying comes out ahead by $22k.