Rent vs buy in Redwood City, CA
The typical monthly rent is $4,301, while a typical home in Redwood City, California costs $1,872,902.
Over 7 years, renting wins by $318k.
With a 20% down payment and today's mortgage rate, the calculation uses Redwood City's typical rent and the home value. The break-even point is year 23.
A clearly labeled opinion, with the math shown. These are estimates, not quotes. When you change a number, the stamp changes too.
- Rent leads by
- $318k after 7 years
- The break-even point
- year 23 when owning catches up
- The true cost of owning
- $15,367 /mo year 1, against $4,301 rent
Change my numbers
The stamp builds on Redwood City's typical rent and the home value. Your rent, price and years can flip the result.
Are your numbers different from the city's?
Enter your own rent, price and down payment. Those numbers change the stamp.
Is renting or buying cheaper in Redwood City?
Over 7 years, renting costs $317,668 less, including the money you get back when you sell. For the first 22 years, renting costs less. Owning catches up during year 23.
Renting. Owning. Net cost to date, by year.
Average rent compared with mortgage payment in Redwood City
Rent and mortgage payments aren't the whole story. Here are all monthly costs for year 1 using Redwood City's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $4,301 | All of it, every month |
| Mortgage payment | $10,211 | $9,000 of it is interest in year 1 |
| Property tax | $858 | 0.55% of the value a year |
| Insurance | $123 | Census median for the city |
| Upkeep | $1,561 | 1% of the value a year |
| Owning, cash out | $12,753 | $1,211 of it builds equity |
| Lost return on the down payment | $3,044 | What that cash would earn each year at 8.3%. |
| Buying costs, spread out | $780 | 3.5% of the price over 7 years |
| True cost of owning | $15,367 | Cash paid out, minus the equity portion, plus both lines above |
Numbers behind the Redwood City result
- Typical home value from Zillow ZHVI, September 2026
- $1,872,902
- Typical rent from Zillow ZORI, September 2026
- $4,301 /mo
- Down payment: private mortgage insurance is avoided with 20%, and the engine doesn't model it
- 20%
- Mortgage rate from Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home valuesFHFA's house price index, California, 1995 to 2025
- The yearly rate is 5.3%.
- Rent growthYearly growth in the CPI rent of primary residence, 2006 to 2026
- 3.5% each year
- Return on savings 60% S&P 500, dividends included, plus 40% 10-year Treasuries, rebalanced every year, 1928 to 2025
- 8.3% each year
- Property tax details: Census ACS 2020-2024, Redwood City
- 0.55% of the value
- Home insurance details: Census ACS 2020-2024, Redwood City
- $123 /mo
- Maintenance based on Fannie Mae, low end of 1% to 4%
- Each year, the amount equals 1% of value.
- Buying costs from Freddie Mac, middle of 2% to 5%
- The price times 3.5%.
- Selling cost details: Agent commission plus closing costs
- 6% of the price
What would make it flip in Redwood City?
With everything else left unchanged, each line shows where Redwood City's 7-year verdict changes.
Renting comes out ahead when
- Annual home price growth is slower than 7.2%; the calculation uses California's long-run rate of 5.3%.
- The mortgage rate remains above 4.20%.
- Renting this type of home costs under $7,700 a month (local typical: $4,301).
- Moving before year 23.
When buying comes out ahead
- Home prices grow by more than 7.2% a year.
- You lock in a mortgage rate below 4.20% (right now it is 7.24%).
- The same home would cost over $7,700 each month to rent.
- You remain for 23 years or more.
How Redwood City compares with the other 812 cities
| Measure | Redwood City | Median city |
|---|---|---|
| Typical home value | $1,872,902 | $422,451 |
| Typical rent | $4,301 /mo | $1,837 /mo |
| Price-to-rent ratio | 36.3 (#24 of 813) | 18.5 |
| Home prices, last 10 years | 4.5% a year | 6.2% a year |
| Rents, last 5 years | 4.5% a year | 4% a year |
| Property tax | 0.55% | 0.87% |
| Households that rent | 51% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
More cities in California
- Rent. Los Angeles, CA has a $111k advantage for renting.
- Rent. San Diego, CA has a $108k advantage for renting.
- Rent. San Jose, CA has a $210k advantage for renting.
- Rent. San Francisco, CA has a $128k advantage for renting.
- Buy. Fresno, CA has a $22k advantage for buying.
- Toss-up. Sacramento, CA. No clear winner; renting leads by $3k.
- Rent. Long Beach, CA. The difference favors renting by $111k.
- Rent. Oakland, CA. The $44k gap goes to renting.
- Buy. Bakersfield, CA. Ownership leads by $11k.
- Rent. Anaheim, CA. Renting comes out ahead by $115k.
- Buy. Stockton, CA. Owning comes out ahead by $16k.
- Rent. Riverside, CA. Renting comes out ahead by $27k.