Quick answer
At current rates, renting wins over the full 30-year horizon in San Diego. Monthly ownership cost $5,616 (vs $$3,000/mo rent) plus CA's 0.74% property tax make the math tough.
Rent vs Buy · CA
Rent vs Buy in San Diego (2026)
Real math using CA's 0.74% property tax rate, $1,800/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In San Diego at CA's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$5,616/mo
Mortgage P&I
$656,000 loan, 30yr @ 6.8%
$4,277
Property tax
0.74% of assessed (CA avg)
$506
Homeowners insurance
$1,800/yr CA avg
$150
Maintenance
1%/yr of home value
$683
Cash at close: ~$184,500 ($20% down + fees)
Renting
$3,000/mo
2BR rent (median)
San Diego market rate
$3,000
Renters insurance
~$15/mo typical
$15
Down payment invested
$164,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $2,616 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $950,605 | $-229,666 | +$212,790 | $-442,456 |
| Year 10 | $1,102,011 | $-331,011 | +$308,409 | $-639,421 |
| Year 15 | $1,277,533 | $-380,307 | +$474,040 | $-854,347 |
| Year 30 | $1,990,355 | +$17,906 | +$1,799,698 | $-1,781,793 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in San Diego?
In San Diego at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($5,616) well exceed median 2BR rent ($3,000), and CA's 0.74% property tax makes the math especially tough.
What's the monthly cost of owning a home in San Diego?
On a median $820K home with 20% down at 6.8% fixed rate: mortgage P&I $4,277, property tax $506 (0.74% of assessed value), homeowners insurance $150 (CA average $1,800/year), and maintenance $683 (1% of home value/year). Total: $5,616/month.
How much down payment do I need to buy in San Diego?
20% down on a median San Diego home ($820K) is $164,000. Plus closing costs of roughly 2.5% ($20,500). Total cash-to-close: about $184,500. FHA loans allow 3.5% down ($28,700) but require mortgage insurance that adds ~$319/month.
What's the 10-year cost of renting vs buying in San Diego?
Over 10 years in San Diego: renters pay $412,700 in cumulative rent but have $721,109 invested (assuming 7% return on the $164,000 down payment + monthly savings). Buyers have paid $806,650 in total ownership costs and hold $541,759 in home equity. Net: renting is ahead by $639,421 at year 10.