Rent vs buy in San Mateo, CA
In San Mateo, California, the typical monthly rent is $3,968, while the typical home price is $1,674,908.
Renting comes out ahead by $282k over 7 years
The calculation includes San Mateo's typical home value, typical rent, 20% down and today's mortgage rate. The break-even point falls in year 23.
Clearly labeled opinion with the math shown. These are estimates, not quotes. Adjust a number, and the stamp changes.
- Renting leads by
- $282k after 7 years
- Break-even point
- year 23 when owning catches up
- Actual cost of ownership
- $13,836 /mo year 1, against $3,968 rent
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In San Mateo, which costs less, renting or buying?
When you include the money you get back from selling, renting costs $282,024 less over 7 years. For the first 22 years, renting costs less. In year 23, owning catches up.
Rent. The owning option. Net cost by year so far.
Average San Mateo rent compared with the mortgage payment
The full picture includes more than rent and mortgage payments. Using San Mateo's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,968 | All of it, every month |
| Mortgage payment | $9,132 | $8,049 of it is interest in year 1 |
| Property tax | $865 | 0.62% of the value a year |
| Insurance | $106 | Census median for the city |
| Upkeep | $1,396 | 1% of the value a year |
| Owning, cash out | $11,499 | $1,083 of it builds equity |
| Lost return on the down payment | $2,722 | Annual return on the cash: 8.3% |
| Buying costs, spread out | $698 | 3.5% of the price over 7 years |
| True cost of owning | $13,836 | Cash out, less the equity portion, plus the two lines above |
The San Mateo verdict, explained by the numbers
- Typical home value: Zillow ZHVI, September 2026
- $1,674,908
- Typical rent: Zillow ZORI, September 2026
- $3,968 /mo
- A 20% down payment avoids private mortgage insurance. The engine doesn't model that insurance.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- For California, 1995 to 2025, the FHFA house price index tracks home price growth.
- 5.3% yearly
- Rent growthCPI for primary residence rent, yearly growth 2006 to 2026
- 3.5% each year
- Savings growth: 1928 to 2025; rebalanced yearly; 60% S&P 500, dividends; 40% 10-year Treasuries
- 8.3% each year
- Property taxesCensus ACS 2020-2024, San Mateo
- 0.62% of the value
- Home insurance: Census ACS 2020-2024, San Mateo
- $106 /mo
- Maintenance: Fannie Mae, at the low end of 1% to 4%
- Each year, 1% of the value.
- Buying costs: Freddie Mac, 2% to 5% midpoint
- Applied to price: 3.5%
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would change the verdict in San Mateo?
With everything else unchanged, each line shows what makes San Mateo's 7-year verdict change.
When renting wins
- Home prices grow at a rate below 7.2% a year; for this calculation, we use California's long-run rate of 5.3%.
- The mortgage rate remains above 4.22%.
- For a home like this, monthly rent is less than $6,990 (typical here: $3,968).
- Moving before year 23.
When buying wins
- Home prices rise by more than 7.2% a year.
- You lock in a rate below 4.22%, and today's rate is 7.24%.
- The same home would cost over $6,990 monthly to rent.
- Your stay lasts 23 years or more.
San Mateo compared with the other 812 cities
| Measure | San Mateo | Median city |
|---|---|---|
| Typical home value | $1,674,908 | $422,451 |
| Typical rent | $3,968 /mo | $1,837 /mo |
| Price-to-rent ratio | 35.2 (#31 of 813) | 18.5 |
| Home prices, last 10 years | 4.1% a year | 6.2% a year |
| Rents, last 5 years | 5.1% a year | 4% a year |
| Property tax | 0.62% | 0.87% |
| Households that rent | 50% | 42% |
Data from: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Verdict: rent for Los Angeles, CA. Renting wins by $111k.
- Verdict: rent for San Diego, CA. Renting wins by $108k.
- Verdict: rent for San Jose, CA. Renting wins by $210k.
- Verdict: rent for San Francisco, CA. Renting wins by $128k.
- Verdict: buy for Fresno, CA. Buying wins by $22k.