Rent vs. buy: which is smarter for you?
Compare the true multi-year cost of renting against buying the same-quality home: rent increases on one side; mortgage payment, taxes, insurance, and maintenance — minus equity built and appreciation — on the other. Free bilingual planning tool for Southern California.
Common questions
Is it cheaper to rent or buy a home?
Month one, renting is almost always cheaper. Over years, the answer flips when you count equity: part of every mortgage payment pays down your own loan instead of a landlord's, and the home can appreciate. The break-even point depends on your rent, the price, your down payment, and how long you stay — which is exactly what this calculator computes.
How long do I need to stay in a home for buying to beat renting?
Commonly around three to five years in Southern California, because buying has upfront costs (closing costs, moving) that need time to be recovered through equity and rent savings. If you may move within a couple of years, renting often wins; the calculator shows your specific break-even year.
Does the comparison count home maintenance and rent increases?
Yes. Owning includes ongoing maintenance and ownership costs, and renting includes typical annual rent increases — both sides compound over time. Ignoring either one is how rent-vs-buy math gets distorted in both directions.