Rent vs buy in Santa Monica, CA
In Santa Monica, California, typical rent is $3,516 /mo and the typical home is $1,657,936.
Renting comes out ahead by $314k over 7 years
Today's mortgage rate and 20% down, applied to Santa Monica's usual rent and home value. The break-even point is year 27.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. Adjust a number, and the stamp updates.
- Amount renting leads by
- $314k after 7 years
- Break-even point
- year 27 when owning catches up
- Actual cost of owning
- $13,664 /mo year 1, against $3,516 rent
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Which costs less in Santa Monica, renting or buying?
Renting costs $313,911 less over 7 years when you count the money you receive when you sell. For the first 26 years, renting costs less. Buying catches up in year 27.
Rent. Home ownership. By year, that's the net cost so far.
Average rent compared with mortgage payment in Santa Monica
Rent and mortgage only tell part of the story. Here are all the monthly costs for year 1, based on Santa Monica's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,516 | All of it, every month |
| Mortgage payment | $9,039 | $7,967 of it is interest in year 1 |
| Property tax | $788 | 0.57% of the value a year |
| Insurance | $142 | Census median for the city |
| Upkeep | $1,382 | 1% of the value a year |
| Owning, cash out | $11,350 | $1,072 of it builds equity |
| Lost return on the down payment | $2,695 | What the cash would earn yearly at 8.3% |
| Buying costs, spread out | $691 | 3.5% of the price over 7 years |
| True cost of owning | $13,664 | Cash paid out, minus the equity share, plus both entries listed higher up |
The figures behind the Santa Monica verdict
- Home value, typical: Zillow ZHVI, September 2026
- $1,657,936
- Typical rent: Zillow ZORI, September 2026 Zillow data
- $3,516 /mo
- Down payment: 20% means no private mortgage insurance, and the engine doesn't model it
- 20%
- Rate used for the mortgage: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index for California, 1995 to 2025
- 5.3% each year
- Rent growth: CPI rent of primary residence, growth each year 2006 to 2026
- Each year: 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%
- Tax on the property: Census ACS 2020-2024, Santa Monica
- 0.57% of the value
- Insurance for the home: Census ACS 2020-2024, Santa Monica
- Monthly cost: $142
- MaintenanceFannie Mae, lower end of 1% to 4%
- A yearly rate of 1% of value
- Buying costsFreddie Mac, 2% to 5% midpoint
- The price multiplied by 3.5%
- Selling costs: Agent commission and closing costs
- The price multiplied by 6%
What would change the result in Santa Monica?
Every line marks the point where Santa Monica's 7-year verdict changes, while all other factors stay the same.
Renting comes out ahead when
- Home prices rise by less than 7.4% a year (our 5.3% figure is California's long-run rate).
- The rate on the mortgage stays above 3.84%.
- For a home like this, monthly rent is less than $6,880 (the typical figure here is $3,516).
- You move before year 27 arrives.
Buying comes out ahead when
- Home prices grow by more than 7.4% a year.
- You fix a mortgage rate under 3.84%, though today's rate is 7.24%.
- Monthly rent on that same home would run above $6,880 a month.
- You remain there for 27 years or longer.
How Santa Monica compares with the other 812 cities
| Measure | Santa Monica | Median city |
|---|---|---|
| Typical home value | $1,657,936 | $422,451 |
| Typical rent | $3,516 /mo | $1,837 /mo |
| Price-to-rent ratio | 39.3 (#12 of 813) | 18.5 |
| Home prices, last 10 years | 3.9% a year | 6.2% a year |
| Rents, last 5 years | 3% a year | 4% a year |
| Property tax | 0.57% | 0.87% |
| Households that rent | 72% | 42% |
Data from: Zillow ZHVI, ZORI, Census ACS 2020-2024.
More cities in California
- For Los Angeles, CA, renting wins by $111k.
- For San Diego, CA, renting wins by $108k.
- In San Jose, CA, renting comes out ahead by $210k.
- In San Francisco, CA, renting comes out ahead by $128k.
- Buy. By $22k, buying wins in Fresno, CA.