Rent vs buy in South Gate, CA
In South Gate, California, the typical rent is $2,291 /mo and the typical home costs $696,567.
Across 7 years, renting comes out $60k ahead
Using South Gate's typical home value and rent, the figures assume 20% down and today's mortgage rate. The break-even point falls in year 13.
Here, the math appears with a clearly labelled opinion. The figures are estimates, not quotes. If you change a number, the stamp changes too.
- Renting leads by
- $60k after 7 years
- Break-even point
- year 13 when owning catches up
- Actual cost of owning
- $5,787 /mo year 1, against $2,291 rent
Change my numbers
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Is buying or renting cheaper in South Gate?
Including money returned to you when you sell, renting costs $60,236 less over 7 years. For the first 12 years, renting costs less. In year 13, owning catches up.
Rent. Buy. Net cost to date, by year.
South Gate average rent compared with mortgage payment
Rent and mortgage payments don't tell the whole story. Here are all monthly costs in year 1 using South Gate's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,291 | All of it, every month |
| Mortgage payment | $3,798 | $3,347 of it is interest in year 1 |
| Property tax | $360 | 0.62% of the value a year |
| Insurance | $77 | Census median for the city |
| Upkeep | $580 | 1% of the value a year |
| Owning, cash out | $4,815 | $450 of it builds equity |
| Lost return on the down payment | $1,132 | What yearly return the cash would earn at 8.3% |
| Buying costs, spread out | $290 | 3.5% of the price over 7 years |
| True cost of owning | $5,787 | Subtract the equity part from cash out and add the two lines above. |
The figures behind South Gate's verdict
- Typical home valueZillow ZHVI, September 2026
- $696,567
- Typical rentZillow ZORI, September 2026
- $2,291 /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, South Gate
- 0.62% of value
- Home insuranceCensus ACS 2020-2024, South Gate
- $77 /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
In South Gate, what would flip it?
Each line shows the point that changes the 7-year verdict for South Gate while all other figures stay the same.
When renting comes out ahead
- With home prices growing under 6.3% yearly, the calculation uses California's long-run rate of 5.3%.
- The mortgage rate remains above 5.70%.
- For a home like this, rent is less than $2,940 a month. The typical local rent is $2,291.
- You make your move before year 13.
Buying comes out ahead when
- Home prices rise by more than 6.3% each year.
- You lock in a mortgage rate below 5.70%, while today's rate is 7.24%.
- You would pay more than $2,940 each month to rent the same home.
- Your stay lasts at least 13 years.
South Gate compared with the other 812 cities
| Measure | South Gate | Median city |
|---|---|---|
| Typical home value | $696,567 | $422,451 |
| Typical rent | $2,291 /mo | $1,837 /mo |
| Price-to-rent ratio | 25.3 (#140 of 813) | 18.5 |
| Home prices, last 10 years | 6.7% a year | 6.2% a year |
| Property tax | 0.62% | 0.87% |
| Households that rent | 55% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More California cities
- Rent. Los Angeles, CA. Renting leads by $111k.
- Rent. San Diego, CA. Renting leads by $108k.
- Rent. San Jose, CA. Renting leads by $210k.
- Rent. San Francisco, CA. Renting leads by $128k.
- Buy. Fresno, CA. Buying leads by $22k.
- Toss-up. Sacramento, CA. The result is close, with renting $3k ahead.
- Rent. Long Beach, CA. Renting comes out $111k ahead.
- Rent. Oakland, CA. Renting leads by $44k.
- Buy. Bakersfield, CA. Buying leads by $11k.
- Rent. Anaheim, CA. Renting leads by $115k.
- Buy. Stockton, CA. Buying leads by $16k.
- Rent. Riverside, CA. Renting leads by $27k.