Rent vs buy in San Diego, CA
In San Diego, California, typical rent is $3,004 /mo and a typical home is $980,490.
Renting comes out ahead by $108k over 7 years
The inputs are San Diego's typical home value and rent, plus a 20% down payment and the mortgage rate seen today. The break-even point arrives in year 15.
A clearly labeled opinion with the math shown appears here. These are estimates, not quotes. If you change a number, the stamp will change with it.
- Renting leads by
- $108k after 7 years
- Break-even point
- year 15 when owning catches up
- Full cost of owning
- $8,175 /mo year 1, against $3,004 rent
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Is it cheaper to rent or buy in San Diego?
Across 7 years, renting saves $108,341 after counting the money returned to you when you sell. For the first 14 years, renting costs less. In year 15, owning catches up.
Renting. Owning. Net cost to date, shown year by year.
Average rent compared with mortgage payment in San Diego
Rent and the mortgage don't tell the whole story. Here are all monthly costs for year 1 using San Diego's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,004 | All of it, every month |
| Mortgage payment | $5,346 | $4,712 of it is interest in year 1 |
| Property tax | $539 | 0.66% of the value a year |
| Insurance | $105 | Census median for the city |
| Upkeep | $817 | 1% of the value a year |
| Owning, cash out | $6,807 | $634 of it builds equity |
| Lost return on the down payment | $1,594 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $409 | 3.5% of the price over 7 years |
| True cost of owning | $8,175 | Cash paid, minus the equity portion, plus the two amounts listed above |
The figures behind San Diego's result
- Typical home value: Zillow ZHVI, September 2026
- $980,490
- Typical rent: Zillow ZORI, September 2026
- $3,004 each month
- Down payment: 20% avoids private mortgage insurance, which the engine doesn't model.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index for California, 1995 to 2025
- Each year, the rate is 5.3%
- Rent growth: CPI rent of primary residence, annual growth 2006 to 2026
- Each year, the rate is 3.5%
- Savings return: 60% S&P 500 with dividends, rebalanced yearly with 40% 10-year Treasuries, 1928 to 2025
- 8.3% each year
- Property tax: Census data from ACS 2020-2024, San Diego
- 0.66% of the value
- Home insurance: Census data from ACS 2020-2024, San Diego
- $105 /mo
- Maintenance: Fannie Mae, low end of 1% to 4%
- Each year, 1% of value
- Buying costs: Freddie Mac, middle of 2% to 5%
- The amount is 3.5% of price.
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would reverse the verdict in San Diego?
Each line shows where San Diego's 7-year verdict changes while all other factors stay the same.
Renting comes out ahead when
- Home prices rise at under 6.5% a year; the calculation uses California's long-run rate of 5.3%.
- For mortgages, the rate stays above 5.27%.
- A similar home rents for under $4,160 monthly (the typical rate here is $3,004).
- Before year 15, you move.
When buying comes out ahead
- Home prices rise by more than 6.5% each year.
- You lock a rate below 5.27% for your mortgage. Today's rate is 7.24%.
- The same home would have a monthly rent above $4,160.
- You remain there for 15 years or more.
How San Diego compares with the other 812 cities
| Measure | San Diego | Median city |
|---|---|---|
| Typical home value | $980,490 | $422,451 |
| Typical rent | $3,004 /mo | $1,837 /mo |
| Price-to-rent ratio | 27.2 (#102 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 | 0.66% | 0.87% |
| Households that rent | 53% | 42% |
Sources: Zillow data: ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Rent. Renting wins by $111k in Los Angeles, CA.
- Rent. Renting wins by $210k in San Jose, CA.
- Rent. Renting wins by $128k in San Francisco, CA.
- Buy. Buying wins by $22k in Fresno, CA.