Is It Still Worth Renting in San Diego? A Quick Look at Renting vs. Buying in Today’s Market

One of the most common conversations we’re having right now with buyers is simple:
“Should I keep renting… or is it finally time to buy?”  With affordability still top of mind in San Diego, it’s a fair question.

According to Redfin’s latest update, U.S. pending home sales jumped 9.6% year over year, reaching their highest level since September 2022. At the same time, mortgage purchase applications are up week over week, signaling that buyers are slowly re-entering the market as confidence builds.

In other words, activity is picking up again - even in a higher-rate environment.

The Cost of Renting in San Diego

On the rental side, pressure continues to build.

A recent Axios San Diego report highlighted that renters in San Diego County now need to earn roughly $50 per hour just to comfortably afford average rent levels. For many households, that number puts renters under serious strain, especially when compared to local wages and cost of living.

What About Buying a Home?

Let’s look at a simple example many first-time buyers consider: a 2-bed, 2-bath townhome with a patio around the $650,000 price point.

🏡 Buying Scenario (Approximate)

Purchase Price: $650,000
Down Payment (5%): $32,500
Loan Amount: $617,500

Assuming current interest rates in the mid-6% range, an estimated monthly breakdown looks like this:

• Principal & Interest: $4,000

• Property Taxes: $700

• Homeowners Insurance: $150

• HOA: $300

👉 Estimated Total Monthly Payment: $5,150/month 

🏢 Renting the Same Type of Townhome

According to Rentometer rental market data for San Diego County, a comparable 2-bed, 2-bath townhome in North County can reasonably command rents around $4,800 per month, depending on location and amenities. 

👉 Estimated Rent: $4,800/month (and increasing annually)

A Different Way to Think About It

What stands out most isn’t necessarily a huge monthly difference - it’s what that payment is doing for you over time.

Renting: Cons

• Payments increase over time

• No equity is being built

• No long-term ownership benefit

• You’re paying 100% toward housing with no return

Buying: Pros

• Each payment builds equity

• Potential for long-term appreciation

• More stability and predictability

• Possible tax advantages

• A path toward long-term wealth building

For many buyers, the surprising takeaway is this:
The gap between renting and owning is often smaller than expected in today’s market.

Where a Lender Can Help

This is where getting real numbers matters.

Even small differences in down payment, credit, or loan structure can change what your monthly payment looks like. A quick conversation with a lender can help you understand what you actually qualify for - and what different scenarios look like side by side.

We can connect you with a trusted lender who can break everything down clearly and simply.

Sometimes clarity starts with just seeing the real numbers.

If you’re thinking about buying or just want to understand the market better in North County San Diego, we’re always here as a resource.